How it works. However, the core product tETH of the Treehouse protocol is changing this situation by cleverly integrating these fragmented interest rate markets.
tETH is not just an ordinary liquid staking token; it is more like an intelligent financial tool. Through an innovative interest rate integration mechanism, tETH allows users to earn Ethereum PoS rewards while also capturing arbitrage opportunities between markets.
When users deposit ETH into the protocol and receive tETH, the system automatically operates on well-known lending platforms such as Aave or Spark. It will lend out assets, borrow ETH, and then convert it into liquid staking tokens (LST), forming a cycle that optimizes returns. This mechanism is not just a simple stacking of returns; it truly integrates various on-chain interest rate signals.
tETH's exchange rate is updated daily, ensuring stable growth in the value of holders' assets. More importantly, it provides reliable cryptoeconomic support for decentralized oracles (DOR), making the determination of benchmark interest rates more accurate.
The fragmentation of traditional DeFi interest rate markets has always been a challenge, and tETH acts as a mediator, helping to unify the market, enabling ordinary investors to implement institutional-level investment strategies. At the same time, TREE token holders can participate in protocol governance through staking, influencing the future direction of tETH.
tETH is not just an independent tool; it is a key bridge within the Treehouse ecosystem, connecting Ethereum's present and future. For Ethereum holders, tETH provides
