DeFi fixed income finally has someone who understands the traditional financial FRA...
The smart clearing solution developed by Treehouse and Pascal essentially allows ETH staking yields to lock in interest rates in advance.
FRA has long been played out in traditional finance, but there's been a lack of a clearinghouse on-chain. Now Pascal has directly moved the clearing logic on-chain, paired with Treehouse's TESR interest rate benchmark, resolving the final hurdle for institutional funds to enter the market.
What's even more exciting is that this can be extended to commodities and structured products. To be honest, if DeFi fixed income can really take off, the first team to thank will be those who can seamlessly transfer traditional financial logic onto the chain.
After all, what institutions want isn't disruption, but rather a familiar way of playing that can run in a different environment...
The testnet is already live, try it yourself:
https://app.treehouse.finance (The idea of bringing the clearinghouse on-chain is indeed clever, but we still need to observe whether liquidity can be established)
