TREE Series (35): DOR's TESR Risk-Free Interest Rate
TESR, short for Treehouse Ethereum Staking Rate, is the first benchmark interest rate curve launched by DOR, specifically designed to create a 'risk-free' interest rate reference for the Ethereum ecosystem. Traditionally, risk-free interest rates, like SOFR, are easily manipulated, but TESR changes the game through decentralized consensus. Panel members submit predictive data, which operators aggregate to form a forward-looking curve, helping DeFi products price more accurately. Why is it called risk-free? Because it aggregates multiple market viewpoints, avoiding single-source bias, allowing ETH holders to reliably assess returns.
TREE tokens are indispensable in TESR—panel members must stake TREE to submit data; higher accuracy means higher dividends; references pay with TREE to query the curve, constructing interest rate swaps or fixed loans. Delegators stake tAssets to support the panel, sharing profits and ensuring the system is resistant to censorship. TESR is not just numbers; it also promotes tETH arbitrage strategies, allowing holders to earn more than the PoS MEY. Imagine lending protocols adjusting interest rates based on TESR; on-chain finance would be more efficient, and fragmentation issues would be resolved.
Compared to CeFi indexes, TESR is more transparent, striving for benchmark authorization through auditing mechanisms. In the future, with multi-chain expansion, TESR will cover BNB or Solana, becoming a standard in DeFi. In summary, TESR is DOR's trump card, bringing risk-free interest rates from theory into reality, allowing ordinary users to enjoy stable returns, with TREE being the driving engine behind it.
