@Treehouse F i

#Treehouse and $TREE

What are the roles of TREE? 1. Interest Rate Fragmentation Crisis The cryptocurrency fixed income market is severely fragmented, with significant interest rate differences displayed when the same asset is traded across different protocols. Unlike traditional finance, which ensures market efficiency through a unified benchmark interest rate, DeFi often lacks a unified reference point, leading to inefficiencies that suppress institutional adoption and limit the development of complex financial products. This fragmentation is particularly evident in the Ethereum lending market, where the interest rates for borrowing ETH can vary dramatically between platforms like Aave, Compound, and Spark. This inconsistency creates uncertainty for users seeking the best terms and hinders the development of complex financial instruments that require stable and predictable reference rates. 2. Lack of Infrastructure in Professional Finance Traditional finance heavily relies on benchmark interest rates such as LIBOR (now SOFR) when pricing trillions of dollars in financial products, from corporate bonds to derivative contracts. The cryptocurrency market lacks equivalent infrastructure, which limits the development of complex fixed income products needed by institutional investors. Without standardized reference rates, it is nearly impossible to create products such as interest rate swaps, floating rate notes, or complex yield curves. 3. Limited Yield Optimization Opportunities The opportunity to generate stable returns through interest rate arbitrage strategies has historically only been accessible to institutional participants with substantial capital and complex infrastructure. Retail investors and small institutions are unable to effectively exploit the interest rate differences between protocols, thus missing out on the enhanced returns that professional traders habitually acquire.