Equip DeFi fixed income with a 'sight', TERR
This time we need to fill the 'benchmark gap' in blockchain!
When it comes to traditional financial fixed income, benchmarks like LIBOR and SOFR are the 'anchor', but in the DeFi world, fixed income surprisingly lacks a unified standard—interest rates are set randomly, pricing relies on guesswork, and comparisons between different projects are impossible; it feels like a headless fly bumping around. Luckily, Official has brought DOR to establish rules for DeFi's fixed income, standardizing interest rates with transparent on-chain mechanisms; this operation is like equipping the chaotic market with a 'sight'!
First, understand what DOR is: it’s like moving the traditional financial benchmarks LIBOR and SOFR onto the blockchain, while having a group of distributed teams with economic interests maintain it. Want to participate? First stake $TREE, then submit three types of interest rate observation data: TESR, TELR, and TEBR, and then calibrate reliable summary results through voting. The key is that everyone's input is tied to real money and can be audited at any time, and the resulting interest rate benchmark reflects the real market situation, not some arbitrary 'friendship price' that someone just came up with.
With DOR, issuing bonds and trading in DeFi becomes straightforward:
Does the DAO want to issue on-chain bonds? No need to set rates arbitrarily anymore; just link interest rates to the DOR benchmark, and costs will automatically align with market levels, so there's no more fear of setting rates too high and losing or too low and having no buyers.
Want to pick bonds as a buyer? Just open the DOR reference curve to understand; bonds from different issuers and with different maturities can be directly compared, no need to calculate through a pile of custom tables until you have a headache.
Even collateral locking has become refreshing—collateral, term, interest, and standardized interest rate definitions correspond directly, eliminating the need to repeatedly verify complex rules.
Trading in the secondary market is also worry-free, as the pricing model has a verified benchmark, eliminating reliance on the issuer’s vague assumptions; both buyers and sellers are on the same page.
What’s even better is that auditors, oracles, and risk dashboards can all share the same set of DOR data, with consistent calculations, so DAO governance will no longer explode over 'data conflicts'. Compared to the past where rates were set based on 'storytelling', DOR allows everyone to talk about 'math' directly—how much is the interest rate depends on the benchmark, how much is the yield can be clearly calculated; this is how a sustainable fixed income market should look!
Thinking further, the potential of DOR goes beyond this: with a standardized DeFi interest rate curve, perhaps in the future we can develop tiered products, index funds, or even connect real-world assets (RWA) to the chain through the DOR gateway; even complex plays like interest rate swaps and forward agreements can become feasible, with clearer settlement rules and no need to tinker with a bunch of customized parameters.
In the end, DOR has done something significant—upgrading DeFi bonds from 'guessing paths' to 'standardized regular troops', with transparent pricing, flexible adaptation, and more participants, directly raising the ceiling for DeFi fixed income.
Finally, I’d like to ask everyone: if your DAO uses DOR, do you plan to rely on it to plan funding tracks, refinance old debts, or use it to set a reliable benchmark for ecosystem subsidies?
