As a penetrating innovation project in the DeFi fixed income track, TreehouseFi identifies two core pain points restricting the deep release of ecological value in the industry: first, insufficient scene-based penetration of asset value; in most similar projects, the value of tAssets (tETH/tUSDC) and RWA is limited to a single scene—tETH's staking credit record cannot back RWA investments, and RWA's full repayment record cannot feed back to tUSDC lending rates, causing 'layered disconnection' of asset value between scenes, requiring repeated verification for institutional cross-scene allocation, incurring an additional 15%-20% risk control cost; second, the lack of a closed loop for user participation value; user participation (governance voting, liquidity provision) in similar projects is often 'one-time trigger, no subsequent feedback,' and participation records cannot be converted into long-term value—after the rule adjustments supported by user votes this month are implemented, there is no return on rights, leading to insufficient 'sense of gain' for long-term participation, with retail users' activity rate below 35% for two consecutive months.

To address the above pain points, TreehouseFi innovatively constructs a 'dual-core architecture of asset value scene penetration + user participation value closed loop,' through three major mechanisms: cross-scene value mapping, participation-feedback-value appreciation closed loop, and ecological collaboration feedback, allowing asset value to penetrate scene barriers for reuse, forming a closed loop where user participation results in 'behavior recorded, feedback valuable, long-term appreciation,' solving the core needs of target users (cross-scene allocation institutions, high-retention retail users) while creating a differentiated penetrating value-added barrier for the project.

1. Asset Value Scene Penetration: Breaking the 'scene isolation' of project assets

TreehouseFi breaks the limitations of similar projects regarding 'isolated asset value scenes' by innovatively designing a 'three-layer penetration system.' Relying on cross-scene value contracts and on-chain credit ledgers, it achieves 'basic value intercommunication, credit value reuse, ecological value aggregation' between tAssets and RWA, allowing asset value to circulate between scenes without loss.

1. Basic Value Penetration: Cross-Scene Yield Complementarity

The project binds the basic returns of different assets with scene demands, achieving 'high-yield assets supplementing low-yield scenes':

• When users allocate a 'tUSDC savings + short-term debt RWA' combination, the basic annualized rate of tUSDC (3.8%) and the coupon yield of RWA (3.6%) are calculated together. If the market interest rate of tUSDC is below 3.5%, the 0.2%-0.4% excess return from RWA is automatically subsidized to the tUSDC account, ensuring that the overall annualized rate of the combination remains stable at over 4.0%. A retail user allocated $100,000 to this combination and received a subsidy income of $720 after more than six months.

2. Credit Value Penetration: Recording Cross-Scene Reuse

The on-chain credit record of assets (holding duration, compliance status) can directly penetrate to other scenes:

• Users holding tETH for more than 60 days without default can reduce their staking rate from 1.5 times to 1.2 times when investing in RWA. An institution using a credit record of 500 tETH needs to pledge only $1.2 million of tETH to invest $1 million in RWA, reducing the pledged occupation by $300,000;

• Conversely, users whose RWA has fully repaid for three consecutive periods can have their tUSDC borrowing scene interest rate reduced by 0.3%-0.5%, with a credit penetration utilization rate of 92%.

3. Ecological Value Penetration: Contributing to Cross-Scene Aggregation

The contributions of asset participation in the ecosystem (governance voting, risk monitoring) can be transformed into value-added across scenes:

• tETH holders participating in the governance voting of the underlying public chain can receive a 0.3% yield bonus on their RWA investments;

• RWA users assist in monitoring the underlying asset risks, their tUSDC cross-chain transaction fees are reduced by 0.1%, and ecological value penetration increases overall asset returns by 12%-15%.

2. User Participation Value Closed Loop: Solving the 'feedback disconnection' on the project user end

To address the pain point of 'participation without a closed loop' in similar projects, TreehouseFi innovatively develops a 'participation value closed loop system,' allowing users to form a sustainable cycle through a four-step process of 'behavior recording - immediate feedback - value appreciation - deep participation.'

1. On-chain Record of Participation Behavior

All user participation behaviors (governance voting, liquidity provision, risk reporting) are recorded on the 'on-chain participation ledger,' with data being immutable and available in real-time:

• Participating once in governance voting earns 100 points, providing $1,000 liquidity for 7 days earns 50 points, effectively reporting a risk earns 500 points, with no upper limit on accumulated points.

2. Immediate Feedback Landing Rights

Points can be redeemed in real-time for rights covering all scenes, avoiding 'virtual points':

• 1,000 points can be exchanged for a '0.1% cross-chain transaction fee reduction voucher,' 3,000 points for an 'RWA staking rate 5% reduction voucher,' 5,000 points for 'new RWA priority subscription rights ($10,000 quota),' with a 100% success rate for rights redemption. A retail user exchanged points for priority subscription rights, earning an additional $5,000.

3. Value Appreciation Promotes Deep Participation

Points accumulated to a threshold automatically upgrade the 'participation level'; the higher the level, the more core the rights:

• Users who reach the 'Advanced Level' (10,000 points) can participate in scene rule suggestions, and those who reach the 'Core Level' (30,000 points) can vote to adjust asset parameters;

• After an institutional user upgrades to core level, it promotes the implementation of the 'dynamic adjustment rule for tETH cross-chain collateral rate,' reducing cross-chain operation costs by 18% and further adding a $2 million allocation.

This system has increased the activity rate of TreehouseFi retail users from 35% to 86% for two consecutive months, with a 94% point redemption rate for user participation, and the frequency of institutional user participation in the ecosystem has increased by 3.8 times compared to the early stages.

3. Ecological Collaboration and Development Path

TreehouseFi forms a closed loop of 'asset penetration → user participation → scene optimization' through 'ecological collaborative contracts': asset penetration attracts user participation, user feedback drives scene optimization (such as simplifying the RWA small investment process), and scene optimization feeds back to asset penetration efficiency (RWA participation rate increased by 30%).

In the next 12 months, the project will add a penetration combination of 'green energy RWA + Layer2 tAssets' and launch 'participation closed-loop visualization tools,' aiming to attract 90 institutions to settle, surpass 220,000 retail users, and grow TVL from $1 billion to $3.2 billion, entering the top 10 of DeFi fixed income project TVL, becoming an industry benchmark of 'value penetration + participation closed loop.'

TreehouseFi's dual-core architecture not only addresses the pain points of 'scene isolation and participation disconnection' in DeFi fixed income but also promotes the project from a 'single yield tool' to a 'penetrating value-added ecosystem,' providing a new path for the digitalization of fixed income.