I have always been particularly interested in 'fixed income' in the DeFi world. After all, for most investors, stable cash flow is more attractive than high-risk short-term speculation. Finance was born to address this pain point, proposing two key components: Decentralized Quoting Rate (DOR) and tAssets, jointly driving the development of the on-chain fixed income market.

DOR: Interest rate standard in DeFi

In traditional finance, benchmark interest rates are mostly set by a few institutions, such as LIBOR, which brings centralized risk and manipulation space. The DOR (Decentralized Quoting Rate) is completely different; it is based on on-chain data and game mechanisms, calculating interest rates through the participation of decentralized groups.

  1. Transparency: All data and calculation processes are public and verifiable by everyone.

  2. Decentralization: Any expert or participant can join, avoiding monopoly by a single institution.

  3. Accuracy: Group members need to stake funds and input correctly to earn rewards; mistakes may result in losses, greatly enhancing the credibility of interest rates.

Even more impressive, DOR employs agnostic design, not only targeting ETH or a single chain but also expandable to multi-chain and even real-world financial indicators, with remarkable potential.

tAssets: Allow assets to 'remain active after being staked'

Another core component is tAssets (Treehouse Assets), such as tETH. These tokens represent liquidity-staked assets, in simple terms, allowing investors to earn yields while still flexibly using their assets. This design addresses the problem of 'funds being locked after staking,' which is crucial for enhancing capital efficiency.

TREE Token: The core driving force of the ecosystem

Of course, the operation of the entire protocol requires a 'fuel,' which is the TREE token. It possesses both governance rights and utility, with a very broad application range:

  1. Query Fee: Use TREE to pay for accessing DOR's on-chain data.

  2. Staking Mechanism: Group members must stake TREE or tAssets to participate in interest rate setting.

  3. Consensus Reward: Members who accurately predict can earn TREE rewards.

  4. Governance Voting: TREE holders can decide on major matters such as protocol parameters and product design.

  5. DAO Funding: Part of the TREE is used to support partners, incentive programs, and new product development.

Summary

In my opinion, what Treehouse is doing is similar to bringing the 'government bond yield curve' to the blockchain world. DOR provides reliable interest rate benchmarks, tAssets enhance capital efficiency, and TREE tokens serve as the lifeblood of the entire ecosystem. This design not only allows DeFi to mature but may also attract institutional players to enter the market. For investors interested in fixed income, Treehouse is definitely a protocol worth paying attention to.