From Experiment to Evolution: TREE and the Next Step in On-Chain Finance
The development of the crypto world often follows the pattern of 'first excitement, then reflection.' From the initial token issuance to liquidity mining, narratives constantly change, but most projects remain at the level of 'quick profits.' For DeFi to transition to a true financial system, it requires not just new gameplay, but fundamental evolution. The emergence of TREE is precisely such an attempt.
1. Why Finance Needs to Evolve
The core of traditional finance is order, and the core of order is benchmarks. Interest rates, exchange rates, benchmark indices—these are the cornerstones that allow modern finance to operate. In DeFi, the lack of a unified interest rate benchmark leads to market fragmentation: each platform acts independently, limiting capital efficiency and making risk assessment difficult. Without benchmarks, there can be no real financial order.
2. The TREE Experiment
TREE is not inventing a new gameplay but is focused on foundational infrastructure:
• tAssets: Transforming assets like ETH into derivative assets, automating yield optimization, and enhancing capital utilization;
• DOR: Generating on-chain interest rate benchmarks through decentralized prediction and consensus, providing a unified reference point for the market.
This is a form of 'financial engineering' thinking, moving the benchmark logic of traditional finance on-chain, driven by transparency and incentives.
3. From Experiment to Evolution
The TREE token serves as a governance and incentive tool, directly involving participants in this process. This means that the interest rates in DeFi are no longer just a black-box result of the protocol, but benchmarks shaped collectively by the entire community.
This may just be an experiment, but its significance lies in allowing DeFi to transition from savage growth to a mature order. The evolution of finance will not happen overnight, but it requires someone to take that first step.
Conclusion
The story of @Treehouse Official may not become the most sensational news, but its value lies in reminding us that DeFi should not remain forever in speculation; it must evolve towards a financial system. And $TREE is a step in that process.
