🌳 $TREE – The Missing Ingredient for On-Chain Options Markets

💹 TREEUSDT Perp: 0.3797 (🔻14.69%)

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🛠️ A Critical Component for DeFi Derivatives

One of the toughest challenges in DeFi derivatives is pricing options on-chain. Traditional models like Black-Scholes need a key input: the risk-free interest rate — basically the guaranteed return from a secure investment.

Until now, DeFi had no reliable on-chain source for this, slowing the growth of a mature options market.

Enter Treehouse Protocol ($TREE) — the first project to provide this essential missing piece. 🌟

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💡 Real-World Pricing Example

Imagine we want to price a 3-month call option on ETH.

• Using Black-Scholes, we need the 3-month risk-free rate.

• Before Treehouse, this wasn’t available on-chain. We had to rely on centralized oracles ❌.

• Now, Treehouse provides it directly on-chain! ✅

If a 3-month Principal Token (PT) for ETH is trading at 0.9875 ETH, the market is implying a guaranteed 1.25% yield for 3 months — or roughly 5% annualized.

We can now plug this verifiable on-chain rate directly into our options model. This makes options more accurate, more trusted, and fully on-chain. 📈

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🔥 Why It Matters

The fixed income primitives from @Treehouse Official aren’t just for lending. They are the foundation for the future of DeFi derivatives, enabling smarter, more reliable markets. 💎

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🌳 #Treehouse | @Treehouse Official Official