Many people hear "fixed income" and mistakenly think it is absolutely safe and guaranteed profit. However, in any financial market, returns come with risks. Treehouse's fixed income design also requires users to understand its boundaries.
First, the risk of smart contracts cannot be ignored. Although Treehouse has passed security checks by multiple auditing institutions, contract risks always exist in the DeFi world. Users need to allocate positions based on their own risk tolerance, rather than blindly over-investing.
Second, the risk of collateral assets is equally important. Taking tETH as an example, its yield logic relies on the staking of ETH. If the price of ETH experiences a significant drop, although staking rewards still exist, the collateral ratio may be insufficient, triggering liquidation. This type of risk is not unique to Treehouse but is a commonality in DeFi collateralized lending.
Finally, market liquidity risk also needs attention. If a certain type of tAsset has insufficient liquidity, users may encounter slippage or delays when they need to redeem or liquidate.
Therefore, "fixed income" does not equal "zero risk"; its core value lies in predictability and comparability. DOR provides a transparent interest rate benchmark, allowing users to make more reasonable choices between different products.
This is an enhancement of risk management, not the disappearance of risk.
