Liquidity as an Ecosystem
💧 Treehouse: Understanding Yield Liquidity as a Living River
Liquidity is often described as depth on an order book. But in DeFi yield markets, liquidity is dynamic, flowing like a river. Stakers, lenders, arbitrageurs all pour capital in, changing depth, direction, and speed. Treehouse charts this ecosystem.
Through tAssets, Treehouse channels scattered tributaries of yield into one navigable current. Users don’t need to chase every pool—they simply hold tETH, which flows across opportunities. Benchmarks like TESR provide the river’s speedometer, showing how fast capital moves and at what rate.
Why it matters: Without measurement, liquidity turns chaotic. By modeling flows, Treehouse equips treasuries and funds to avoid whirlpools of volatility. For DAOs managing millions, this can be the difference between sustainability and wipeout.
Speculation: In the long run, Treehouse could publish “Liquidity Weather Reports,” forecasting yield floods or droughts across chains.
👉 Would you treat liquidity as more important than APY when allocating funds in DeFi?
