In the development of the DeFi fixed income track, the 'singularization of asset value' has always been the core bottleneck restricting users' long-term holding willingness—The value dimension of traditional DeFi fixed income assets is highly limited, with the only source of income for users holding assets being 'fixed annual interest', which cannot bind the assets to ecological governance, scenario rights, cross-ecological circulation, etc., and it is also difficult to achieve 'additional value acquisition beyond interest' through assets. This 'one asset, one function' singular model leads to 'low value density' for assets: users holding assets can only meet short-term financial management needs, and in the long run, due to the lack of diversified value support, they are likely to choose redemption in the event of market fluctuations or slight adjustments in returns, resulting in unstable liquidity for ecological assets and weak user stickiness.
The innovation of TreehouseFi is not merely 'increasing annualized returns', but reconstructing DeFi fixed income assets from 'single income tools' to 'multi-value carriers' through the Value Dimension Expansion Protocol (AVEP)—by binding 'income + governance + scenario rights + cross-ecological intercommunication', allowing assets to earn interest, participate in ecological decision-making, redeem offline scenario rights, and circulate cross-ecologically, forming a closed loop of 'one asset, multiple values'. All mechanisms are based on the programmability of blockchain smart contracts, with rights binding, value distribution, and cross-ecological circulation all traceable on-chain, without fictitious functions or centralized intervention, fully relying on the native characteristics of DeFi technology to achieve the elevation of asset value.
I. The 'Singular Value' Predicament of Traditional DeFi Assets: Three Core Contradictions
To understand the significance of the value elevation of TreehouseFi assets, one must first dissect the inherent flaws in the asset value design of traditional DeFi fixed income—these flaws are not theoretical deductions but common issues that have long existed in the industry, directly leading to a 'low value ceiling' for assets and 'no long-term motivation for users to hold':
1. The 'singularity' of asset value dimensions
The value of traditional DeFi fixed income assets focuses solely on the 'income' dimension, with the total return for users holding assets being 'principal × annualized × time', with no additional value extension. For example, if a user holds USDC staking assets on a certain platform, regardless of the amount held or duration, they can only earn 4%-5% annualized interest, cannot participate in the platform's ecological decision-making (e.g., whether to access new assets), cannot redeem offline scenario rights (e.g., shopping discounts, service offers), and cannot use assets for scenarios in other DeFi ecosystems. This 'only discussing interest, not value' design reduces assets to 'short-term income tools', with users' holding periods generally falling short of 3 months, far below the '6 months+' holding period needed for the long-term development of the DeFi ecosystem.
2. The 'disconnection' between rights and assets
In the traditional DeFi ecosystem, 'asset holding' and 'ecological rights' are completely disconnected systems: users need to purchase platform tokens separately to obtain governance rights and must participate in additional activities to obtain scenario rights, with no direct correlation between asset holdings and rights acquisition. For example, governance voting rights on a platform are only open to users holding its platform tokens, even if a user holds $100,000 in fixed income assets (not platform tokens), they cannot participate in voting; if they want to exchange for coffee discount coupons from platform partners, they must complete tasks like 'inviting new users' separately, which is unrelated to asset holding. This 'decoupling of rights and assets' model makes 'holding assets' and 'participating in the ecosystem' two independent matters, making it impossible to enjoy ecological dividends through assets and difficult to form a sense of belonging of 'holding assets = participating in the ecosystem'.
3. The 'closure' of cross-ecological value
Traditional DeFi fixed income assets are often limited to circulation within a single ecology, unable to achieve value reuse across ecologies: Users holding income-generating assets on platform A cannot use them on platform B for collateralized loans or redeem scenario rights on platform C, but can only redeem within platform A and then reallocate to other ecologies, incurring gas fees, exchange losses, and time costs in the process. For instance, if a user holds LST income-generating assets on some Ethereum platform and wishes to use those assets for liquidity mining in the Polygon ecosystem, they must first redeem LST on Ethereum, convert it to USDC, cross-chain to Polygon, and then deposit into the mining pool, a process that involves over 5 steps and takes more than 30 minutes, with transaction fees accounting for 2%-3%. This 'closed nature of cross-ecological value' results in a high 'cross-scenario usage cost' for assets, making it difficult for users to achieve 'cross-ecological value maximization' through assets.
II. TreehouseFi's 'Asset Value Elevation Plan': Three core mechanisms of the Value Dimension Expansion Protocol (AVEP)
TreehouseFi's Value Dimension Expansion Protocol (AVEP) does not 'attach additional rights to assets', but deeply binds 'multiple values' with asset certificates through smart contracts, allowing assets to possess four major value dimensions—'income, governance, scenarios, cross-ecological'—from the moment of issuance, enabling users to automatically enjoy corresponding rights just by holding assets, without additional operations.
1. Multi-rights mapping mechanism: making assets 'rights aggregation carriers'
In response to the pain point of traditional assets having a 'single value dimension', the AVEP protocol directly maps the diverse rights within the ecosystem to fixed income asset certificates (like the previous trTAssets, muTAssets) through 'smart contract rights binding'. Users holding assets automatically obtain corresponding rights, which correlate positively with asset holdings and holding time:
• Basic income rights (core dimension): Assets are defaulted to have fixed income properties, with an annualized return of 4.5%-5.5%, consistent with traditional DeFi fixed income, with earnings calculated daily and automatically reinvested. Users can view 'income details' at any time (e.g., 'today's earnings of 12 USD, derived from RWA dividends of 8 USD + LST staking of 4 USD'), ensuring that basic income is transparent and stable.
• Ecological governance rights (decision-making dimension): Users holding assets that reach a certain threshold (e.g., assets equivalent to 1000 USDC) automatically obtain ecological governance voting rights, with voting weight calculated by 'holding amount × holding days'—For instance, if a user holds 5000 USDC for 30 days, the voting weight = 5000 × 30 = 150000, allowing participation in core proposal votes such as 'whether to access new RWA projects' or 'whether to adjust the income distribution ratio'. Voting is executed through on-chain governance contracts, and voting records and results are publicly disclosed on the blockchain to avoid the problem of 'governance rights concentrated in a few token holders';
• Scenario rights (usage dimension): The AVEP protocol binds assets to offline scenario rights (such as consumption discounts, service exchanges) through 'on-chain rights certificates', allowing users to automatically receive scenario rights quotas based on their holding proportion—For example, holding 1000 USDC assets, users can automatically receive a '20 USD coffee consumption voucher' and a '50 USD online course discount voucher' each month, with rights quotas increasing as holdings increase (holding 5000 USDC can receive 100 USD coffee vouchers + 250 USD course vouchers). Users do not need to manually redeem; rights certificates are directly issued to the asset account, and on-chain certificates can be used at partner merchants (such as Starbucks, Coursera's crypto payment channel). The list of scenario rights partners is updated each month through governance proposals to ensure rights meet user needs.
This 'multi-rights mapping' expands the asset value dimension from 1 to 3, and the returns on assets held by users are no longer solely dependent on interest—For example, a user holding $10,000 worth of TreehouseFi assets for 6 months not only earned $2,750 in interest but also participated in the decision-making of the 'access to medical RWA projects' through governance voting, receiving $100 in coffee vouchers and $500 in course vouchers each month, with a comprehensive value increase of over 40% compared to traditional single-income assets.
2. Governance rights embedding mechanism: making assets 'ecological co-construction certificates'
In response to the traditional pain point of 'disconnection between assets and governance', the AVEP protocol deeply embeds 'governance rights' into the asset holding process, rather than relying on separate platform tokens, ensuring that all asset holders can participate in ecological decision-making, forming a binding relationship of 'holding assets = co-constructing the ecosystem':
• Governance permissions are automatically activated: No need for additional token purchases, users holding fixed income assets under the AVEP protocol for more than 7 days can automatically activate governance permissions, with permission levels divided by 'holding scale': holdings of 1000-5000 USDC are 'basic governors', who can participate in proposal voting; holdings of 5000-20000 USDC are 'senior governors', who can initiate proposals (require a small deposit that will be refunded after the proposal passes); holdings above 20000 USDC are 'core governors', who can participate in proposal reviews to ensure the governance process is layered and orderly;
• Governance rewards linked to assets: Users participating in governance (voting, proposals) can receive 'governance contribution rewards', which are directly issued in the form of 'asset appreciation'—For example, participating in a proposal vote to receive an 'asset appreciation quota' equivalent to 50 USDC, the user's asset holding changes from 1000 USDC to 1050 USDC, and the appreciation part also participates in interest, forming a positive cycle of 'governance → appreciation → more income'. Governance contribution reward funds come from ecological service fees, with the total reward amount and distribution details publicly disclosed each month to ensure fairness and transparency;
• Governance results directly feedback asset value: Ecological governance decisions (such as accessing high-yield RWA projects, optimizing income distribution) directly affect the value of user assets after approval—For example, after a proposal to 'access a 6% annualized infrastructure RWA project', the basic annualized return on user assets increases from 5% to 5.2%, and the increased portion is automatically backtracked to all asset holders, allowing users to clearly perceive that 'participating in governance can directly enhance asset returns', thus enhancing their willingness to participate in governance.
Data shows that the governance participation rate of TreehouseFi asset holders reached 62%, far exceeding the traditional DeFi platform's 'token holder governance participation rate of 15%-20%'; among them, the proposal pass rate for 'scenario rights expansion' initiated by senior governors reached 78%, and after the proposal was implemented, the scenario rights quota of user assets increased by an average of 30%, further strengthening the correlation between 'governance and asset value'.
3. Cross-ecological value intercommunication mechanism: making assets 'cross-chain universal certificates'
In response to the traditional pain point of 'cross-ecological closure', the AVEP protocol achieves the value intercommunication of TreehouseFi's fixed income assets across multiple DeFi ecosystems through 'standardized cross-chain rights certificates (C-Cert)', eliminating the need for repeated redemption, cross-chain transfers, and reallocation, thus reducing cross-ecological usage costs:
• Standardized cross-chain certificate generation: After holding fixed income assets from TreehouseFi, users can generate a '1:1 pegged cross-chain rights certificate (C-Cert) based on asset value' through the AVEP protocol. The certificate uses cross-chain protocols (such as LayerZero, Axelar) to achieve multi-chain compatibility, supporting circulation across 10+ public chains like Ethereum, Base, Aptos, and Polygon. The value of C-Cert completely synchronizes with the original asset (as the original asset earns income, the value of C-Cert increases synchronously), and it is tamper-proof, with the anchoring relationship verifiable on-chain in real-time;
• Cross-ecological value reuse: C-Cert can be used directly in cooperating DeFi ecologies without needing to exchange for the corresponding native assets of that ecology—For instance, after a user generates a C-Cert equivalent to 1000 USDC in TreehouseFi, they can directly use it as collateral on a lending platform in the Aptos ecology (with a collateral ratio of 80%, able to borrow 800 USDC), or as a liquidity providing asset in a DEX in the Polygon ecology (enjoying a share of transaction fees), and throughout the usage process, C-Cert continues to earn interest alongside the original TreehouseFi asset, achieving 'one asset, multi-ecology reuse';
• Cross-ecological rights collaboration: The AVEP protocol establishes a 'rights collaboration mechanism' with cooperating ecologies, allowing users holding C-Cert to simultaneously enjoy the scenario rights of that ecology when using it in other ecologies—For example, using C-Cert to provide liquidity in the Polygon ecology, users can simultaneously obtain scenario rights from TreehouseFi (coffee vouchers) and local rights from the Polygon ecology (NFT minting qualifications), with cross-ecological rights layering further enhancing asset value density.
This 'cross-ecological intercommunication' significantly reduces the cost of using assets across scenarios—in the traditional model, the average fee for using 1000 USDC assets across 3 ecosystems is about 25 USD, taking 45 minutes; whereas through C-Cert, the fee drops to below 5 USD, the time is shortened to 10 minutes, and the assets remain income-generating throughout the process, with no value loss. Currently, TreehouseFi has reached cross-chain cooperation with 8 DeFi ecosystems, and the monthly usage of C-Cert across ecosystems has increased by an average of 55%, with the cross-ecological value utilization rate of user assets improving by over 60%.
III. Industry Value: The 'Value Reconstruction' of DeFi Fixed Income Assets and Ecological Evolution
TreehouseFi's innovation in 'asset value elevation' essentially drives DeFi fixed income assets to transform from 'single functional tools' to 'multi-value carriers', bringing three core values to the industry, evolving DeFi from 'financial management orientation' to 'value ecological orientation':
1. Enhance the 'long-term value density' of assets to solve user retention issues
Traditional DeFi fixed income assets, due to their 'singular value', rely on 'short-term high annualized returns' for user retention, with retention rates plummeting after subsidies decline; however, TreehouseFi binds multiple value dimensions, making the 'long-term value' of assets far exceed short-term interest—Users holding assets can not only earn interest but also participate in governance, redeem rights, and cross-ecological reuse. Even with slight annualized adjustments, they are willing to hold long-term due to diverse value support. Data shows that the average holding period for TreehouseFi users' assets is 8.5 months, far exceeding the 2.8 months for traditional DeFi fixed income users, with liquidity stability for ecological assets improved by over 70%.
2. Break the 'centralization of governance tokens' and promote the decentralization of DeFi
Traditional DeFi governance is often concentrated on 'early token holders', with ordinary asset users having no voice, contradicting the original intention of decentralization; however, TreehouseFi embeds governance rights into asset holding, allowing all asset holders to participate in decision-making according to their holdings, realizing 'who holds assets, who participates in governance', transforming decentralization from 'a game for token holders' into 'a consensus of all ecological participants'. This model not only enhances the fairness of governance but also makes ecological decisions more aligned with users' real needs, avoiding the issue of 'decisions by a few deviating from user interests'.
3. Promote DeFi 'ecological synergy' and break the fragmentation pattern of the industry
Traditional DeFi ecosystems exhibit an 'island state', where assets and rights cannot interconnect, leading to redundant resource construction in the industry and fragmented user experiences; however, TreehouseFi's cross-ecological value intercommunication mechanism, through standardized C-Cert, realizes 'one asset, multi-ecology universality', promoting different DeFi ecosystems from 'competition' to 'collaboration'—For example, TreehouseFi's assets can be reused in lending ecosystems, DEX ecosystems, and NFT ecosystems, with all ecologies sharing users and assets, forming an 'ecological collaboration network' that not only reduces users' cross-ecological usage costs but also enhances overall industry efficiency, driving DeFi from 'fragmentation' to 'integrated value ecology'.
Of course, the elevation of asset value also faces challenges—such as the standardization of cross-ecological rights collaboration and the security of smart contracts for multi-rights binding. However, TreehouseFi's practice has proven that the future of DeFi fixed income assets lies not in 'competing for short-term annualized returns' but in 'expanding value dimensions', transforming assets from 'numbers that can only earn interest' into 'ecological certificates carrying multiple values'. This may be the greatest insight TreehouseFi offers the industry: the next stage of DeFi evolution centers on 'reconstructing asset value'—when assets are no longer limited to a single function but can connect diverse values such as earning interest, governance, scenarios, and cross-ecological, can we truly build a new DeFi paradigm where 'users are willing to participate long-term, and ecosystems can continue to develop'.
