Currently, there are two core pain points in the DeFi fixed income sector that restrict long-term ecological construction: First, asset value cross-cycle disconnection, where most similar projects’ asset rules statically switch with market cycles (bull/bear)—the annualized yield of tETH locked in the bull market reaches 6.5%, but when the bear market arrives, the yield drops sharply to 3.0%, and the earlier locked rights cannot continue, forcing users to readjust allocations, making it difficult to meet institutional needs for “cross-cycle asset planning”; Second, the intergenerational gap in user participation value, where user rights (like priority subscription rights and rule advisory rights) in similar projects are limited to current accounts, leading to automatic invalidation of rights during institutional account handovers or retail user asset inheritances, weakening the “value accumulation sense” of long-term participation, resulting in a binding cycle between core users and the project of less than 1 year.

To address the above pain points, TreehouseFi innovatively constructs a dual-core architecture of “asset value continuity across cycles + user participation value intergenerational transfer”, through three major designs: periodic connection mechanisms, intergenerational inheritance contracts, and ecological collaboration feedback, allowing asset value to smoothly continue through market cycle switches, and enabling user participation value to be transferred across accounts and generations, thereby addressing the core needs of target users (cross-cycle allocation institutions, long-term inheritance-oriented retail users) and forming a differentiated barrier of “cross-cycle symbiosis” for the project.

1. Asset value continuity across cycles: breaking the “periodic disconnection” of project assets.

TreehouseFi breaks the limitations of similar projects’ “periodic disconnection” by innovatively designing a “three-tier cross-cycle continuity system”, relying on periodic recognition algorithms and cross-cycle value contracts to ensure asset “bull market gains can be accumulated, bear market values have buffers, and periodic switches are without loss”, securing the stability of cross-cycle allocation.

1. Bull Market Yield Accumulation Mechanism

During the bull market (when the crypto market index rises over 20%), excess asset returns are automatically converted into “cross-cycle buffer limits”, preventing a sharp drop in bear market returns:

• Users lock tETH during the bull market (annualized 6.5%), and for every 100 dollars in excess returns (beyond the bear market benchmark of an annualized 4.0%), automatically accumulate 10 dollars as a “buffer limit”;

• When the bear market arrives, the buffer limit can directly offset asset income losses—e.g., an institution locked 1000 tETH during the bull market, accumulating a 50,000 dollar buffer limit. When the annualized yield of tETH drops to 3.8% in the bear market, after using the buffer limit to offset, the actual annualized yield remains at 4.5%, providing 60% higher stability than similar projects.

2. Bear Market Value Buffer Design

During the bear market (when the market index falls over 15%), the project activates “cross-asset value hedging,” subsidizing volatile assets with highly resilient assets:

• The stable yield of RWA (e.g., AA+ rated government bonds) is 3.8% annualized, extracting 20% to subsidize tETH and other volatile assets, ensuring that tETH’s annualized yield in the bear market does not fall below 3.5%;

• Simultaneously, the liquidity limit for volatile assets is relaxed—the liquidity limit for tETH lock-up is increased from 50% during the bull market to 70%, meeting users' emergency needs. A retail user redeemed 30% of tETH in the bear market without incurring any penalties, resulting in an 85% improvement in liquidity experience compared to similar projects.

3. Adaptive Adjustment of Cycle Parameters

The project automatically adjusts asset rules through the “Periodic Recognition Module” (integrating crypto market index and traditional bond volatility data):

• During the bull market, the maximum lock-up period is automatically extended (from 180 days to 360 days), and long-term lock-up returns are increased (annualized yield for 360-day lock-up is 0.8% higher than for 180 days);

• In the bear market, the minimum lock-up period is shortened (from 30 days to 15 days), and a “periodic switch redemption channel” is opened—users can unlock locked assets early, incurring only a 0.1% fee (average 0.5% for similar projects).

2. User Participation Value Intergenerational Transfer: Solving the “Inheritance Gap” at the User End of the Project

TreehouseFi addresses the pain point of similar projects where “rights cannot be inherited” by innovatively developing the “Participation Value Intergenerational Transfer System”, allowing user participation value to be transferred across accounts and generations through on-chain inheritance contracts, cross-generational records tracing, and intergenerational value-added mechanisms, reinforcing long-term binding.

1. Intergenerational Compliance and Legacy of Rights

Users can transfer core rights to designated accounts through the “On-Chain Inheritance Contract”, ensuring that the inheritance process is compliant and traceable:

• Institutional users can transfer core rights such as “RWA Joint Calibration Rights” and “Customized Lock-up Rule Rights” to new accounts under the same entity without reapplying. When a European asset management firm hands over accounts, this function quickly transfers rights, improving handover efficiency by 90%;

• Retail users can inherit small rights such as “fee reduction vouchers” and “RWA priority subscription rights” to relative accounts, with a 100% success rate, avoiding “rights becoming invalid with account closure.”

2. Participation Records Traceable Across Generations

The project establishes a “permanent on-chain participation record” for each user, documenting participation behaviors, rights acquisition, and value contributions, which can be viewed across generations:

• Voting records of parental participation in ecological governance and contribution values for providing liquidity can be traced through archives, and inherited contribution values can be directly used to unlock one's own rights—e.g., a retail user inherits 5000 contribution points from their parents, directly unlocking the right to a “3% reduction in RWA pledge rate”, saving 6 months of accumulation time.

3. Intergenerational Value-Added Mechanism

Inherited rights automatically appreciate with ecological development, incentivizing long-term holding:

• The “New RWA Priority Subscription Rights” inherited from parents have their limits doubled according to the ecological TVL growth rate (limit doubles for every 100% increase in TVL);

• The “Asset Calibration Advisory Rights” inherited by institutions increase in voting weight based on the duration of inheritance (10% increase for each year inherited); an advisory right inherited from an institution used after 2 years successfully promoted the optimization of tUSDC interest rate rules, increasing its own returns by 0.4%.

This system extends the binding cycle between TreehouseFi's core users and the project from 1 year to over 3 years, achieving an 88% inheritance rate of retail user rights and an 85% improvement in intergenerational handover efficiency for institutional users.

3. Ecological Collaboration and Development Path

TreehouseFi, relying on the “Cross-Cycle Collaborative Contract”, forms a closed loop of “asset cross-cycle continuity → attracting long-term users → intergenerational transfer reinforcing binding → user feedback optimizing periodic rules”: Assets stably attract institutional allocation across cycles; intergenerational transfer encourages users to participate long-term, leading to suggestions for optimization (e.g., adjusting bear market buffer ratios), which in turn refines asset rules to better fit cross-cycle needs.

In the next 12 months, the project will introduce a new “Bull Market tAssets + Bear Market RWA” cross-cycle combination, optimize intergenerational inheritance contracts (supporting multi-account batch inheritance), aiming to attract 100 institutions to join (currently 25), retail users to exceed 260,000 (currently 70,000), and increase ecological TVL from 1.2 billion to 3.6 billion dollars, entering the top 10 of DeFi fixed income projects by TVL, becoming an industry benchmark for “cross-cycle stability and intergenerational symbiosis.”

TreehouseFi’s dual-core architecture not only resolves the pain points of DeFi fixed income’s “periodic disconnection and inheritance failure,” but also promotes the project from a “short-term yield tool” to a “cross-cycle symbiotic ecology,” providing a new paradigm for the long-term and inheritable allocation of global fixed income assets.