I have been pondering why TreehouseFi has garnered the favor of traditional financial giants. Recently, after interacting with several friends in the traditional finance sector, I gained a deeper understanding of this issue. Their investment in TreehouseFi is not only based on the potential of DeFi but also on its innovation in technology and products.
Traditional finance places the utmost importance on transparency, credibility, and risk management. TreehouseFi's DOR system precisely meets these needs. It provides a reliable interest rate benchmark through a decentralized approach, which is similar to the LIBOR used in traditional finance. This system can help traditional financial institutions better understand and assess the risks of on-chain assets.
In addition, the multi-chain portfolio analysis and risk management tools offered by TreehouseFi are highly aligned with the business needs of traditional financial institutions. They require a transparent, comprehensive tool to monitor and manage on-chain assets. TreehouseFi's products precisely meet this demand, providing traditional financial institutions with a safe and compliant DeFi 'entry point.'
The background and technical strength of TreehouseFi's team are also significant reasons for its appeal. They can transform complex DeFi concepts into products that are easy to understand and use, integrating them with the business logic of traditional finance. This cross-domain capability is something many DeFi projects lack.
Overall, TreehouseFi is providing infrastructure for the DeFi world using the language of traditional finance. I believe that as more traditional capital and institutions enter DeFi, TreehouseFi will play an increasingly important role.