TREE Series (Forty-Seven): The Transparent Revolution of DOR on the Chain
Let's talk about how DOR is initiating a revolution in on-chain transparency. DOR, short for Decentralized Quotation Rate, is the core innovation of the Treehouse protocol. It completely overturns the centralized model of traditional benchmark interest rates, where the manipulatable pain points of systems like LIBOR are almost non-existent in DOR. Why is it considered revolutionary? Because everything operates transparently on the chain, allowing everyone to see how interest rates are formed.
The consensus mechanism of DOR relies on panel members submitting interest rate predictions and market data, which are aggregated by operators to form a forward-looking interest rate curve. The key is that all submissions and consensus processes are transparently recorded on the blockchain, making it clear who submitted what and the accuracy of those submissions. This is much more reliable than the index audits of CeFi, avoiding black-box operations. The TREE token plays a significant role here: panel members must stake TREE to participate, and they face penalties for incorrect submissions while receiving rewards for accurate ones, incentivizing everyone to contribute data honestly. Delegators can also stake tAssets to support the panel and share in the profits.
This transparency extends beyond just data; it also reaches DeFi products. For instance, when referencers use DOR to build interest rate swaps or fixed loans, users can track the source of the benchmark interest rate in real-time, reducing trust costs. Imagine, previously, interest rates were fragmented, and everyone was guessing; now DOR acts like a public ledger, injecting confidence into the on-chain financial ecosystem. The vision of Treehouse is to enable DeFi to be truly censorship-resistant and decentralized through DOR. Community feedback shows that since the launch of DOR, participant enthusiasm has surged, as transparency makes the game fairer. If you care about on-chain governance, you might want to pay more attention to updates on DOR, as it is quietly changing everything.
