In the current DeFi market, new opportunities for institutional investors are both open and challenging. Managing large amounts of capital is not only about returnsâcompliance, risk control, and transparency are equally important. As a solution to this complex problem, innovative solutions have emerged, opening a new path for institutional investors in DeFi capital management.
The DOR (Decentralized Rate System) is an important innovation. Information asymmetry in traditional finance often poses a major risk. However, on the Treehouse platform, institutional investors can obtain real-time, transparent yield benchmarks through DOR. This means they can clearly assess the cost of loans and yield risks on-chain, significantly reducing the risks created by information asymmetry. This on-chain verifiable feature allows investors to better understand fund flows and yield situations, enabling them to make more informed investment decisions.
tAssets and another important tool of #Treehouse . Institutions can convert their ETH or LSTs into tETH for standardized management. This standardized approach not only maintains yield but also provides the opportunity to use tETH as collateral in the loan market. Institutions can use this loan to earn arbitrage, hedge, or design structured products. More importantly, collaboration with leading protocols like Aave and Compound enhances the effectiveness of these strategies, creating new investment options and profit opportunities for investors.
The Gaia program is significant. This program gives institutional investors the opportunity to participate in ecosystem construction. They can participate in governance and proposals not only as platform users but also by staking. They can adjust future products and interest rate models, becoming partners in growth with the platform.
Treehouse is not just a yield platform; it is an expandable financial infrastructure. It offers institutional investors transparent interest rate references, standardized assets, and opportunities for governance participation, through which capital in DeFi is managed more efficiently and securely. $TREE is the core that connects all these functions and plays a crucial role in the entire ecosystem. More institutional investors are joining the Treehouse ecosystem, which will reach new heights in the future development of blockchain finance.