Currently, the DeFi fixed income sector faces two core pain points that constrain the long-term vitality of the ecosystem: first, the lack of scenario-based symbiotic calibration for asset value. Most similar projects achieve 'asset-scenario' symbiosis, but parameter calibration is 'independent' — when tETH symbiosis with green RWA, the tETH staking rate adjustment only references its own liquidity and does not link to RWA's underlying cash flow (for example, when the wind power project generation increases by 30%, the staking rate is still not lowered); RWA yield distribution is based solely on fixed proportions, disregarding the contribution of credit endorsement provided by tETH, leading to 'symbiotic imbalance', with the 'yield deviation' of institutional cross-asset symbiotic allocations exceeding 18%; second, insufficient evolution of user participation value, as the participation value forms (like points and rights) of similar projects are 'fixed once generated' — the 'fee reduction points' initially obtained by users cannot evolve into 'scenario rule proposal rights' even if they become core users later. The 'ecological contribution value' accumulated by institutions cannot be converted into credit endorsements issued by RWA, rendering the long-term 'value growth' weak, with retail user participation value evolution rate below 22%.

To address the above pain points, TreehouseFi innovatively constructs a 'asset value scenario-based symbiotic calibration + user participation value evolution' dual-core architecture. Through three major designs of dynamic calibration of symbiotic parameters, multi-form evolution of participation value, and ecological collaborative feedback, it ensures that the symbiotic parameters between assets and scenarios are precisely matched in real-time, and user participation value evolves flexibly with demand and depth. This not only addresses the core needs of target users (institutional users needing balanced symbiosis and growth-oriented retail users), but also creates a differentiated barrier for the project with 'symbiotic calibration + value evolution'.

1. Asset value scenario-based symbiotic calibration: solving the 'symbiotic imbalance' at the asset end of the project.

TreehouseFi breaks through the limitations of similar projects of 'symbiosis but not calibration', innovatively designing a 'three-layer symbiotic calibration system', relying on multi-asset linked Oracles, symbiotic balance algorithms, and reverse feedback contracts to achieve 'asset-scenario' symbiotic parameters 'dynamically adjusted by contribution, risk complement adjustment, and yield balance adjustment', ensuring that the symbiotic relationship always benefits both parties without bias.

1. Contribution-oriented parameter calibration

The core parameters of assets and scenarios (staking rate, yield proportion) are dynamically adjusted according to both parties' contribution levels to avoid 'one-sided bias':

• In the symbiotic scenario of 'tETH + green energy RWA', the calibration system calculates the contributions of both parties in real-time — the credit endorsement provided by tETH reduces the RWA collateralization rate by 20%, recorded as 'tETH contribution value 80'; RWA's stable cash flow provides 30% liquidity buffer for tETH's cross-chain, recorded as 'RWA contribution value 70';

• Calibration of income distribution according to contribution value proportion: tETH receives 53% (80/150) of the symbiotic incremental income, while RWA receives 47% (70/150), and the tETH staking rate is adjusted down as the RWA contribution value increases (for every 10 increase in RWA contribution value, the staking rate decreases by 1%). An institution that allocates this combination earns an additional $21,000 in quarterly income due to contribution calibration compared to 'fixed proportion distribution'.

2. Risk complementary calibration

The risk factors of assets and scenarios hedge each other, calibrating safety parameters to reduce overall risk exposure:

• If the cross-chain default risk of tETH (such as cross-chain delay) rises by 0.5%, the calibration system automatically increases the risk reserve ratio for RWA by 1%, using the stability of RWA to hedge the risk of tETH;

• If the underlying asset volatility risk of RWA (such as sudden drops in wind power generation) exceeds the threshold by 2%, the dependency of tETH's cross-chain liquidity will be adjusted down (from 30% to 25%), using the liquidity flexibility of tETH to balance the risk of RWA.

• In Q3 2024, a wind power RWA's power generation dropped by 15% due to weather reasons, and the risk calibration mechanism completed parameter adjustments within 4 hours, resulting in a user income loss of only 0.2%, far below the average level of 1.5% for similar projects.

3. Yield balance calibration

When one side of the symbiosis significantly outperforms the other, the calibration system triggers 'equilibrium adjustment' to avoid 'the strong getting stronger':

• If the symbiotic yield of tETH exceeds RWA by 1.5 percentage points for 7 consecutive days, 10% of tETH's incremental yield will be automatically transferred to RWA, while slightly lowering the tETH staking rate (0.5%) to enhance the attractiveness of RWA;

• Conversely, if RWA yields are too high, 5% of incremental yields will subsidize tETH's cross-chain fees, forming a closed loop of 'yield balance - participation balance - more stable symbiosis'.

This system has achieved a 'yield balance degree' of 93% for asset symbiosis in TreehouseFi, reducing the yield deviation of institutional symbiotic allocations from 18% to 3%, with symbiotic asset scale growing by 52% quarterly.

2. User participation value evolution: addressing the 'value solidification' on the user end of the project.

To address the issue of 'fixed participation value forms' in similar projects, TreehouseFi has innovatively developed a 'multi-form evolution system for participation value', supporting participation value 'cross-form transformation, demand-based upgrades, and depth-based value addition' through a three-tier evolution path of 'basic form - advanced form - high-tier form', transforming participation value from 'static rewards' to 'dynamic growth carriers'.

1. Basic form: Accumulated value components

User participation behaviors (governance voting, liquidity provision, risk monitoring) first transform into 'basic value components' as a foundation for evolution:

• Participating once in effective governance voting earns 100 'voting components', providing 50 'liquidity components' for maintaining $1,000 liquidity for 7 days, and effectively reporting RWA risks once earns 500 'risk components';

• Components have no expiration date and can be accumulated in the 'evolution warehouse'. For example, a retail user accumulates 300 voting components, 500 liquidity components, and 200 risk components over 4 months, establishing a foundation for evolution.

2. Advanced forms: cross-form transformation and upgrade

Basic components can be transformed into 'advanced value forms' (equity, credit, certificates) as needed, and support secondary transformation between forms:

• Components → Equity: 200 voting components + 300 liquidity components can be transformed into 'RWA priority subscription rights (up to $20,000 limit)';

• Equity → Credit: Unused 'priority subscription rights' can be transformed into 'scenario credit endorsements' to reduce the borrowing rate of tUSDC (0.3%);

• Credit → Certificate: Accumulated 'scenario credit endorsements' can generate 'credit certificates (NFTs)' as collateral supplements for RWA investments;

• A certain institution transforms the 'risk components' into 'risk monitoring rights', which are then transformed into 'RWA credit endorsements', allowing them to invest $1 million in RWA with a reduced collateral of $50,000, significantly enhancing value evolution flexibility.

3. High-tier forms: core rights that increase with depth

Accumulation of advanced forms to a threshold can evolve into 'high-tier value forms' (ecological decision-making rights, asset co-creation rights), and the equity function continues to expand with the depth of participation:

• Accumulating 3 'credit certificates' + 10,000 basic components can evolve into 'symbiotic calibration proposal rights', initially able only to propose suggestions; after participating in calibration discussions more than 5 times, 'calibration voting rights' are unlocked.

• A retail user evolved from 'priority subscription rights' to 'calibration voting rights', successfully promoting the 'optimization of contribution value calculation between tETH and RWA', increasing their own symbiotic portfolio yield by 0.4 percentage points.

This system has increased the participation value evolution rate of retail users in TreehouseFi from 22% to 88%, with the proportion of high-tier equity users rising from 8% to 35%, and institutional users' participation frequency in value evolution increasing by 5.5 times compared to the initial period.

3. Ecological collaboration and development path

Relying on the 'symbiotic calibration-value evolution collaborative contract', TreehouseFi forms a closed loop of 'asset symbiotic calibration → attracting user participation evolution → user evolution feedback optimization calibration': asset symbiotic calibration attracts institutional balanced allocation, users deepen their participation to achieve value evolution, and subsequently propose calibration optimization suggestions (such as 'refining RWA contribution value calculation dimensions'), which in turn feed back into more precise symbiotic calibration.

In the next 12 months, the project will introduce a 'cross-border logistics RWA + Southeast Asian local tAssets' symbiotic combination to optimize value evolution functions (supporting AI-recommended evolution paths), and launch a 'symbiotic calibration-value evolution dual dashboard'; the goal is to attract 140 institutions to settle (currently 45), with retail users exceeding 450,000 (currently 110,000), and ecological TVL growing from $2 billion to $5.5 billion, entering the top 10 in DeFi fixed income project TVL, becoming an industry benchmark for 'precise symbiosis and value growth'.

TreehouseFi's dual-core architecture not only addresses the pain points of DeFi fixed income's 'symbiotic imbalance and value solidification', but also promotes the project from a 'single symbiotic tool' to an 'evolving symbiotic ecosystem', providing a new paradigm for the balanced and growth-oriented allocation of global fixed income assets.