Revolution in the fixed income market
In the world of traditional finance, fixed income markets such as bonds and deposits significantly surpass equity markets in size. However, in DeFi, this sector remains underdeveloped. The Treehouse project aims to fill this gap by creating infrastructure for standardized fixed-income products. With innovative solutions, Treehouse could become the 'missing link' that attracts institutional capital into decentralized finance.@Treehouse Official
What is Treehouse and how does it work?
The Treehouse protocol is designed to address two main issues of the DeFi market: yield fragmentation and the lack of reliable base rates. Its main components are tAssets and Decentralized Offered Rates (DOR).
tAssets: These are income-generating tokens that automatically collect income from various DeFi protocols. For example, tETH (the first tAsset) optimizes staking income by using arbitrage to gain additional profitability. It is not just a standard liquid token for staking, but a tool that dynamically allocates assets to maximize profit.
Decentralized Offered Rates (DOR): This is a decentralized mechanism for establishing benchmark interest rates, analogous to the LIBOR rate in traditional finance. DOR aims to create transparent and predictable rates, enabling the development of reliable products such as fixed loans, bonds, and interest rate swaps.
Reasons to pay attention to Treehouse
Even at an early stage of development, Treehouse demonstrates significant potential. Here are a few key factors that may interest investors:
Strong team: The founders of Treehouse are veterans of traditional finance, providing a deep understanding of markets and the ability to build scalable infrastructure. Their experience helps develop products that meet the needs of both retail and institutional investors.
Funding and valuation: The project has attracted significant funding, including $18 million in an initial round, and its token was valued at $400 million even before the full launch. This indicates high investor confidence, including from major venture funds.
TVL Growth: Despite being in its early stages, its total value locked (TVL) has already exceeded $610 million. This underscores the high demand for its products and rapid adoption among users. The number of users is also growing, surpassing 47,900.
Focus on infrastructure: Instead of creating yet another lending platform, Treehouse is building fundamental infrastructure for the entire DeFi market. DOR and tAssets are foundational primitives that other protocols can use, creating a network effect and increasing the value of the TREE token.
Expansion and roadmap: Treehouse plans to expand its tAssets to other blockchains such as Solana and Avalanche, as well as to launch forward rate agreements (FRA) to lock in future interest rates. These steps could significantly increase TVL and the protocol's utility.
Conclusion
Treehouse is not just another crypto project, but an ambitious infrastructure protocol that has the potential to reshape the DeFi landscape, making it more stable and attractive for larger players. Early success, a strong team, and a focus on fundamental market issues make it one of the most intriguing projects for investors.
Of course, investments in DeFi are associated with high risks, so it is important to conduct your own research. However, Treehouse definitely deserves close attention.
