1/🧵After a few years in DeFi, I have seen the temptations of high APY and have fallen into the traps of exit scams.
I've slowly come to understand a principle: rather than pursuing the highest yield, it is better to pursue certainty in returns.
@Treehouse Official is doing just that: establishing 'fixed income infrastructure' on-chain.
Recently they released an educational video,$TREE I rewatched this educational video, which completely opened up my understanding 👇
2/🧵
In traditional finance, the fixed income market has a scale of over $130 trillion, relying on clear interest rates, transparent structures, and controllable risks.
But what about in DeFi?
➤ Interest rates are unpredictable
➤ Returns rely on luck
➤ Lack of a unified benchmark pricing
Treehouse breaks through with two core products:
🔹 tAsset (tETH): Liquidity yield asset + automatic arbitrage strategy, not just staking ETH for yield, tETH has built-in strategies that automatically capture on-chain interest rate arbitrage opportunities. It can also be used as collateral, with a higher capital utilization rate than ordinary LSTs, and importantly, the provided interest is significantly higher.
🔹 DOR: The 'benchmark interest rate' mechanism in DeFi, the on-chain LIBOR/FedFund, currently offers various benchmark interest rate data like TESR (staking), TELR (lending), EERR (re-staking), aiming to become a credible interest rate standard in DeFi. It addresses the fragmentation of DeFi interest rates, making them more transparent and combinable.
3/🧵
I have used tETH, and the experience can only be described as incredibly smooth.
On the surface, it looks like an ordinary LST (liquid staking token), which you can move, transfer, and participate in various DeFi protocols as freely as you would with ETH. However, unlike others, tETH is tied to Treehouse's strategy system, which automatically helps you deploy arbitrage strategies and earn stable interest income.
You do not need to operate actively, nor do you have to worry about risk exposure management. The entire process of earning is almost completed by an 'invisible hand.' Meanwhile, you can still put tETH into liquidity pools, use it for collateralized lending, or even participate in more advanced strategies. This model of 'fixed income + flexible combinations' is the first time I have truly felt in DeFi the sense of security that comes from the idea of 'not relying on gambling, but on a system.'
This combination of 'DeFi native + fixed income enhancement' made me feel for the first time on-chain: returns are not based on gambling, but supported by a system.
4/🧵
And $TREE tokens are the lifeblood of this system.
It is not only used for querying DOR (Decentralized Offered Rate) and predicting reward mechanisms, but also connects to the distribution and coordination of tAsset strategy returns. More importantly, it undertakes governance responsibilities and ecological incentive tasks, serving as the essential fuel for the entire operation of Treehouse.
In simple terms, $$TREE is the key entry point for understanding Treehouse. It is not merely a speculative target, but one of the 'pricing units' for the future fixed income system in DeFi.
I once felt exhausted by DeFi's 'yield': it was either endless high volatility or various complicated layered bubble structures. But Treehouse feels different to me.
It does not aim to bring about more violent yields, but rather to pursue a more precise, transparent, and combinable financial system.
5/ 🧵
Treehouse inspired me: the next phase of DeFi is not about more violent yields, but about a more precise system.
The era of fixed income in DeFi has just begun, and Treehouse is the most 'financial system-like' attempt I have seen so far.
You will understand: the future of DeFi can provide more stable returns and more robust financial models.
This is why I am betting on Treehouse.
