$TREE Whiteboard: Yield Stripping Made Simple 🌳
@TreehouseOfficial is introducing a DeFi primitive that changes how we see yield.
Take a yield-bearing asset like stETH. Treehouse lets you split it into two powerful tokens:
🔹 Principal Token (PT):
Works like a zero-coupon bond.
Buy at a discount today, redeem 1 stETH at maturity.
Predictable, fixed returns — perfect for risk-averse investors.
🔹 Yield Token (YT):
Holds all the staking rewards until maturity.
Ideal for those who want leveraged exposure to yields.
⚡ Why This Matters
By separating principal from yield, $TREE unlocks new composable financial building blocks for DeFi — giving both conservative and high-risk investors tailored strategies on the same asset.
