As an innovative leading project in the DeFi fixed income track, TreehouseFi has long observed two core pain points restricting the flexible development of the ecosystem: first, the imbalance between asset value and liquidity, with most similar projects falling into the dilemma of 'high returns requiring lock-up, high liquidity yielding low returns'—long-term locked tAssets/RWA can yield 5.5%+ annually, but liquidity quota is less than 20%, and users need to bear a 0.5%-1% unlocking penalty when urgent funds are needed; while liquid assets have full liquidity (100% redeemable at any time), they yield only 2.8%-3.2% annually, making it difficult for institutions to balance 'long-term allocation returns' and 'short-term liquidity emergencies'; second, user participation is deeply fragmented, as user participation behaviors in similar projects are mostly 'single-point triggers' (e.g., single governance votes, temporary liquidity provision), lacking 'behavioral link connection' and 'continuous value accumulation'—the points earned by users participating in votes this month are not related to the rewards for providing liquidity next month, and participation records cannot form a personal 'ecological contribution archive', leading to insufficient 'sense of purpose' in long-term participation, with retail users' active rate falling below 32% for three consecutive months.
In response to the above pain points, TreehouseFi innovatively constructs a 'dual-core structure of asset value-liquidity dual optimization balance + user participation deep coherence', allowing for a tiered liquidity release mechanism, a participatory behavior linkage system, and an ecological collaborative feedback design, ensuring that assets can maintain long-term high returns while also having flexible liquidity; user participation behaviors form a coherent link, contributions are traceable and can accumulate value, meeting the core needs of target users (institutions balancing returns and liquidity, retail users pursuing a sense of continuous participation), and creating a differentiated barrier of 'flexible value-added' in the DeFi fixed income field.
1. Asset value-liquidity dual optimization balance: Solving the 'returns-liquidity' contradiction on the asset side of the project
TreehouseFi breaks the limitations of similar projects that offer 'returns and liquidity as a choice', innovatively designing a 'three-tiered balanced liquidity system', relying on dynamic liquidity pledge contracts and multi-dimensional return adjustment mechanisms to achieve 'the longer the lock-up time, the higher the return, and the liquidity quota increases simultaneously', allowing assets to find the optimal balance between 'long-term appreciation' and 'short-term flexibility'.
1. Tiered liquidity release: Time is positively linked to liquidity
The project deeply binds the asset lock-up period with the released liquidity quota to avoid 'one-size-fits-all' lock-up rules:
• Basic liquidity tier (30-day lock-up): tETH annualized at 5.2%, with 30% of the liquidity quota available for release—users can redeem 30% of their positions at any time, while the remaining 70% continues to be locked for interest, with no penalties for redemption; if more liquidity is temporarily needed, users can apply for 'emergency unlock' (with an additional 0.2% fee, which is 60% lower than the 0.5% penalty of similar projects);
• Advanced liquidity tier (90-day lock-up): tETH annualized at 5.6%, with 60% of the liquidity quota available for release—supports 'partial unlock cycles', meaning that after unlocking 30% of the position, if not used within 15 days, it can automatically replenish the lock-up and restore the original quota, avoiding 'disruption of benefits after unlocking';
• Core liquidity tier (180-day lock-up): tETH annualized at 6.0%, with 80% of the liquidity quota available for release—additional unlocking of the 'liquidity quota borrowing' feature, allowing users to lend unused liquidity quota (e.g., using only 50% of the 80% quota) to others, earning 0.1%-0.2% in borrowing income, further enhancing the comprehensive value of the assets.
Technically, the project uses 'dynamic liquidity contracts' to monitor lock-up periods and quota usage in real time, with liquidity adjustment delays of ≤10 minutes, and all quota change records can be checked on-chain. A certain institution allocated 1,000 tETH to the core liquidity tier and through 'partial emergency unlock + quota borrowing' within 6 months, achieved a basic income of $360,000 and an additional $24,000 in borrowing income, with a liquidity utilization rate of 92%, which is 3.6 times higher than similar projects (liquidity utilization rate of 20%).
2. Asset value securitization: Separation of income rights and liquidity
In response to the 'liquidity necessity' scenario for long-term locked assets, the project innovatively launched the 'securitization of asset income rights' feature, separating the 'ownership' and 'income rights' of assets:
• Users holding RWA locked for 180 days (annualized at 4.0%) can split future income rights for 120 days into 'income certificates (ERC-20)' through contracts, which can be transferred in the project trading market, and after transfer, users still hold ownership of RWA (redeemable principal at maturity), only relinquishing part of the income rights;
• The pricing of income certificates is dynamically determined by 'remaining income amount + market liquidity demand', typically at a discount of 5%-8% (e.g., $100 future income rights priced at $92-$95), satisfying the liquidity needs of the transferor while providing the transferee with 'discounted income'. In Q3 2024, the trading volume of the project's income certificates reached $12 million, with transferors averaging 97% of the principal's liquidity, and transferees averaging a 6.2% discounted income.
3. Liquidity emergency buffer: Risk pool guarantees flexible redemption
The project builds a 'liquidity emergency pool', extracting 15% from asset service fees to inject into the pool, providing a buffer for sudden liquidity demands:
• When the daily redemption demand for a certain type of asset exceeds 20% of the locked scale (triggering liquidity warning), the emergency pool automatically advances funds to ensure that users’ redemptions are received in real-time;
• After advance payment, the system guides capital backflow through 'tiered interest rate adjustment'—users who relock within the next 3 days can receive an additional 0.3% return subsidy. In October 2024, when the crypto market experiences short-term volatility, the daily redemption demand for tUSDC reached 35%, and the emergency pool completed the advance payment within 4 hours, with a 100% redemption arrival rate for users, and a subsequent 85% fund backflow rate in the following 3 days, with no liquidity run.
This system has allowed TreehouseFi's asset 'return-liquidity balance index' (annualized returns × liquidity utilization rate) to reach 4.8, far exceeding the average level of similar projects (1.9), and the satisfaction rate for institutional 'long-term allocation + short-term emergency' needs increased from 55% to 98%, with asset lock-up scale growing by 40% quarterly.
2. User participation deep coherence: Solving the 'fragmentation of participation' issue on the user end of the project
TreehouseFi addresses the pain point of 'fragmented participation behaviors and lack of value accumulation' in similar projects by innovatively developing a 'participation behavior linkage system', transforming user participation from 'single-point behavior' into 'coherent links', where contributions are traceable and value can accumulate, enhancing the sense of purpose and achievement in long-term participation.
1. Participation link node-based: Behavioral connections without gaps
The project breaks down user ecological participation into four tiered link nodes: 'initial-basic-deep-core', with nodes interlinked and progressive:
• Initial node (registration and certification): Completing KYC certification unlocks 'basic participation rights' (e.g., tUSDC liquid configuration, viewing RWA basic information) and grants 100 'participation link points';
• Basic node (liquidity provision): Providing liquidity for any scenario for over 7 days automatically connects to the basic node, doubling the points (200 points), unlocking the '10% discount on cross-chain transaction fees' benefit;
• Deep node (governance participation): Monthly participation ≥2 times in ecological governance votes (e.g., asset rule adjustments, new scenario launches), connecting to the deep node, adding 300 points (totaling 500 points), unlocking 'priority subscription rights for RWA';
• Core node (risk co-construction): Applying to become a risk monitoring node for underlying RWA assets, with quarterly effective reports ≥1, connecting to the core node, increasing points to 1,000, unlocking the 'scene rule suggestion rights' (able to propose optimizations for pledge rates and redemption rules).
Node connection is fully automated; after users complete the previous node, the system real-time pushes the next node task and benefit forecast, increasing the participation link completion rate from 30% in similar projects to 85%.
2. Participation contribution archival: Records are traceable and value can be accumulated
The project establishes an 'on-chain participation contribution archive' for each user, recording the participation time, behavior details, and points acquisition status of each node in real time; the archive is immutable and permanently valid:
• The archive includes a 'participation timeline' (e.g., completing the basic node in October 2024, upgrading to the deep node in December 2024), 'benefit acquisition records' (e.g., redeeming priority subscription rights with points in January 2025), and 'ecological contribution value' (contribution values corresponding to node upgrades, core node contribution value = 3×basic node);
• Contribution value is directly linked to 'user ecosystem level'; the higher the level, the more benefits can be gained from subsequent participation—core node users participating in new scenario tests can earn 2x points, while certain retail users with core node levels accumulate points 2.3 times faster than basic node users within 3 months.
3. Value tier unlocking: The deeper the participation, the more core the benefits
Different link nodes correspond to 'tiered rights', avoiding 'homogenization of rights', allowing users to clearly perceive 'the connection between participation depth and value':
• Basic node rights focus on 'operational discounts' (fee discounts, redemption priorities);
• Deep node benefits focus on 'asset appreciation' (priority subscription for high-yield RWA, exemption from pledge rates);
• Core node rights upgrade to 'ecological co-construction' (rule suggestion rights, new asset testing rights).
A certain institutional user upgraded from the initial node to the core node, not only obtaining priority subscription rights for 4.3% annualized green energy RWA (ordinary users at 4.0%), but also participating in optimizing the 'tETH cross-chain liquidity quota rules', reducing their cross-chain operation costs by 18%, forming a positive cycle of 'deeper participation → better rights → higher returns'.
This system increased TreehouseFi's retail user active rate from 32% to 88% over three consecutive months, with a user participation link completion rate reaching 72%, and the frequency of institutional user ecological participation increasing by 4.2 times compared to the initial settlement period.
3. Ecological collaborative feedback: Building a flexible cycle of 'asset balance-user participation-scenario optimization'
TreehouseFi relies on the 'ecological collaborative contract' to deeply bind asset value-liquidity balance with user participation deep coherence, forming a closed loop of 'increased asset flexibility → enhanced user participation willingness → scenario optimization feeding back to assets':
• Assets → Users: High-yield and high-liquidity assets attract users to try cross-node participation, with a certain retail user quickly upgrading from the initial node to the basic node due to the tETH core liquidity tier (80% quota + 6.0% annualized), increasing participation enthusiasm by three times;
• Users → Scenarios: The needs proposed by users in the participation link become the core basis for scenario optimization—deep node users reported 'insufficient priority subscription quota for RWA', and within 14 days, the project increased the quota from $10,000/person to $30,000/person, boosting the RWA subscription rate from 65% to 90%;
• Scenario → Assets: Scenario optimization further enhances asset flexibility—after the RWA subscription rate increases, the project adds the 'secondary splitting of RWA income rights' function, further increasing asset liquidity utilization rate by 15%, forming a cycle of 'scenario optimization → more flexible assets → more user participation'.
Data shows that users participating in the collaborative cycle have asset allocation scales 2.8 times higher than non-participating users, with the ecological TVL's quarterly compound growth rate reaching 38%, far exceeding the industry average (22%).
The project’s flexible value-added ecological development path
In the next 12 months, TreehouseFi will continue to strengthen its core advantage of 'flexible value-added':
• Asset side: New 'cross-border settlement type tAssets + supply chain RWA' tiered liquidity combination, launching the 'cross-chain reuse of liquidity quota' feature, aiming to increase the asset 'return-liquidity balance index' to 5.5;
• User end: Launching a 'participation link visualization dashboard', allowing users to customize node upgrade plans, adding 'link acceleration benefits' (e.g., inviting friends to participate can shorten node upgrade time);
• Scenario end: Expanding 'derivative hedging scenarios', supporting the linkage arbitrage between asset income right certificates and tAssets, increasing the scenario coverage types from 4 to 6.
The goal is to attract 85 institutions to settle in (currently 18), with retail users exceeding 200,000 (currently 52,000), and the ecological TVL growing from $850 million to $3 billion, entering the top 10 in DeFi fixed income project TVL rankings, becoming an industry benchmark that balances 'returns and liquidity, participation and value'.
TreehouseFi, through the 'dual-core structure of asset value-liquidity dual optimization balance + user participation deep coherence', not only solves the common pain points in the DeFi fixed income field of 'returns and liquidity cannot coexist, participation and value being disconnected', but also promotes the project from a 'single fixed income tool' to a 'flexible value-added ecological platform', providing a new paradigm of 'flexibility and coherence' for the digitalization of global fixed income assets.
