TREE Series (Fifty): DOR's CeFi Index Audit
We will delve into the application of DOR in CeFi index auditing. This is a remarkable skill of the Treehouse protocol that bridges traditional finance and DeFi. As a decentralized benchmark interest rate, DOR serves not only on-chain but also audits CeFi indices, ensuring transparency and accuracy, addressing the manipulation risks of traditional systems like SOFR.
How to audit? DOR's consensus mechanism collects interest rate predictions from panel members, forming a curve, and then compares it with CeFi index data. Operators and entrusters use TREE as collateral to guarantee accuracy; if wrong, they are fined, if right, they are rewarded. This is more reliable than centralized auditing, as everything is visible on-chain, resistant to censorship. References can use DOR data to verify CeFi products, such as interest rate swaps or bond pricing, striving for benchmark authorization.
The TREE token shines here: query fees are paid in TREE, and the auditing process generates income, distributed to participants. The roadmap mentions that DOR will expand to CeFi index auditing, helping traditional institutions transition to DeFi. For example, if a CeFi fund uses DOR for auditing, it can prove its index is accurate, leading to a spike in user trust. At the same time, this feeds back to tAssets, optimizing cross-chain yields.
Why is this important? The integration of CeFi and DeFi can attract more capital into the Treehouse ecosystem. Community user feedback indicates that DOR auditing makes the protocol more professional. If you are interested in traditional finance, you might want to study DOR's white paper, as it is driving an auditing revolution. In the future, DOR may become an industry standard, and TREE holders will greatly benefit from it.
