Currently, there are two core pain points that restrict the vitality of the DeFi fixed income ecosystem: first, the lack of asset value scenario empowerment; in most similar projects, assets (tAssets/RWA) are only passively adapted to scenarios as 'yield tools' and cannot actively create added value for scenarios—holding tETH in the staking scenario only generates basic returns and cannot help reduce the underlying asset risks in RWA scenarios; the stable cash flow of RWA also cannot supplement liquidity buffers for lending scenarios, resulting in 'unidirectional dependence' rather than 'bidirectional empowerment', and insufficient 'value increment' for institutional scenario-based allocation; second, the lack of compounding for user participation value; participation rewards in similar projects (such as points, coupons) are often 'one-time consumables'. Points obtained from governance participation this month become invalid after redeeming transaction fee discounts, failing to generate continuous appreciation, and the long-term 'snowball effect' of value is weak, with retail users' active rate remaining below 30% for four consecutive months.

In response to the aforementioned pain points, TreehouseFi innovatively builds a dual-core architecture of 'asset value scenario empowerment + user participation value compounding', through three major designs: bidirectional empowerment mechanism, compound appreciation system, and ecological collaborative feedback, allowing assets to actively create value for scenarios, while scenarios feed back to increase asset value. The user participation value grows compound over time, addressing the core needs of target users (scenario-based value increment demand institutions, long-term compound retail users), while forming a differentiated competitive advantage for the project in 'empowerment + compound interest'.

1. Asset value scenario empowerment: breaking the 'unidirectional dependence' on the asset side of projects.

TreehouseFi breaks the limitations of similar projects in 'asset passive adaptation' by innovatively designing a 'three-layer bidirectional empowerment system', leveraging scenario empowerment contracts and a multi-asset collaborative pool to achieve a bidirectional cycle of 'assets helping to reduce risks in scenarios, scenarios helping to increase returns on assets, and collaborative creation of incremental value'.

1. Assets reduce risks for scenarios

The on-chain attributes of assets (credit records, liquidity) actively hedge risks for scenarios:

• When users transfer tETH into the 'staking + RWA' dual scenario, the continuous holding duration of tETH (full 90 days) can serve as a 'risk buffer factor' for the RWA scenario, reducing the risk reserve requirement for the underlying assets of RWA by 15%;

• RWA (such as AA+ rated corporate bonds) with a full payment record can be injected into the 'liquidity buffer pool' of the lending scenario. When there is a short-term redemption peak in the lending scenario, RWA cash flow is prioritized for advance payment. In a certain period, redemption demand in the lending scenario exceeded 20%, and the RWA buffer pool completed the advance payment within 4 hours, achieving a 100% redemption success rate for users.

2. Scenarios increase returns for assets

The incremental value generated by scenarios due to asset empowerment feeds back into asset returns:

• The reserve cost saved due to tETH's risk buffer in RWA scenarios allows 30% to be extracted as 'empowerment income' for tETH, increasing tETH annualized returns from 5.2% to 5.5%;

• The lending scenario reduces bad debt losses due to RWA liquidity buffers and allocates 20% to subsidize RWA holders, increasing RWA annualized returns from 3.8% to 4.0%. An institution allocates a 'tETH + RWA' combination, earning an additional $12,000/year due to bidirectional empowerment.

3. Collaborative creation of incremental value

The collaboration between assets and scenarios generates new value and expands income sources:

• In the 'tUSDC + cross-border RWA' collaborative scenario, tUSDC provides multi-currency settlement support for RWA, while RWA brings cross-border trade flow to tUSDC. Together, they launch 'cross-border settlement income certificates', where users holding the certificates can additionally receive 0.3% of cross-border transaction fee sharing, resulting in an overall annual increase of 0.6 percentage points in the composite value of the portfolio.

2. User participation value compounding: solving the 'value stagnation' on the user side of projects.

TreehouseFi addresses the issue of 'one-time consumption of participation value' in similar projects by innovatively developing a 'participation value compound interest system'. Through a three-step process of 'base accumulation - compound interest - value realization', users' participation value appreciates over time, forming a compound effect of 'the longer the participation, the more value accumulated'.

1. Accumulation of participation value base

All ecological participation behaviors of users (governance voting, liquidity provision, risk monitoring) are converted into 'compound interest base', which remains permanently valid:

• Participating in one effective governance vote earns 100 bases, providing $1,000 liquidity for 7 days earns 50 bases, effectively reporting RWA risks earns 500 bases, with no upper limit on base accumulation. A certain retail user accumulated 10,000 bases in six months, laying the foundation for compound appreciation.

2. Compound interest automatic appreciation

The base is calculated with 'monthly compound interest', with a more active ecosystem leading to a higher interest rate:

• The basic compound interest rate is 3% per month, and if the ecosystem TVL grows by more than 10% in a month, the interest rate rises to 4%;

• In the first month, 10,000 bases earn 300 in interest, in the second month the base becomes 10,300, earning 412 in interest. After six months, the base increases to 11,900, earning 800 more bases compared to simple interest, with the compound effect significantly amplified over time.

3. Flexible realization of compound value

The total value after compound appreciation can be exchanged for 'high-level rights' or 'asset income bonuses', with various realization methods:

• A total value of 12,000 can be exchanged for 'RWA priority subscription rights ($30,000 limit)', and a total value of 20,000 can be exchanged for 'asset empowerment rule suggestion rights' (e.g., adjusting tETH's risk buffer ratio for RWA);

• It can also be directly exchanged for 'annual yield bonus vouchers' (1,000 total value exchanges for 0.3% bonus, valid for 1 year). After redemption, a user's $100,000 tETH annualized return increases from 5.2% to 5.5%, earning an additional $300 annually.

This system has increased the active rate of TreehouseFi retail users from 30% to 87% over four consecutive months, with a participation value realization rate of 93%, and the frequency of institutional user participation has increased fourfold compared to the initial entry.

3. Ecological collaboration and development path

TreehouseFi relies on 'empowerment - compound interest collaborative contracts' to form a closed loop of 'asset empowerment scenarios → scenario incremental attracting users → user participation compound appreciation → user feedback optimizing empowerment rules': Asset empowerment makes scenarios more attractive, users actively participate to obtain compound interest, and then propose optimization suggestions (such as increasing the proportion of green RWA empowerment), which in turn enhances the efficiency of asset and scenario empowerment.

In the next 12 months, the project will introduce a new 'green energy tAssets + supply chain RWA' empowerment combination, launch a 'compound value visualization tool' (which displays real-time growth of the base and interest), aiming to attract 105 institutions (currently 28), retail users to exceed 280,000 (currently 75,000), and the ecological TVL to grow from $1.3 billion to $3.8 billion, entering the top 10 in DeFi fixed income project TVL rankings and becoming an industry benchmark for 'bidirectional empowerment and compound symbiosis'.

TreehouseFi's dual-core architecture not only addresses the pain points of DeFi fixed income's 'unidirectional dependence and value stagnation' but also promotes the project's upgrade from a 'single yield tool' to an 'empowerment-based compound ecology', providing a new paradigm for the scenario-based and long-term allocation of global fixed income assets.