Treehouse

TREE

Treehouse Protocol, the Decentralized Fixed Income Layer, addresses a critical gap in the fixed income digital asset market by establishing a standard for decentralized reference rates. As the digital asset ecosystem expands, interest rate fragmentation and the absence of a benchmark rate have hindered the development of robust financial instruments comparable to those in traditional finance. The Treehouse Protocol aims to bridge this gap by leveraging smart contracts and a decentralized consensus mechanism to create two new financial primitives: Treehouse Assets (tAssets) and Decentralized Offered Rates (DOR). tAssets (Liquid Staking Tokens 2.0): These tokens aim to unify fragmented on-chain interest rate markets for Proof of Stake (PoS) chains. tAssets provide holders with real yield beyond the native network staking rewards through interest rate arbitrage on lending platforms. The first tAsset, tETH, is a liquid staking token that converges Ethereum’s interest rate market towards the ETH staking rate and in the process earning real yield. Users receive the tETH token which they can then use to participate in DeFi activities. Since launching in September 2024, tETH has reached a Total Value Locked (TVL) of over $500M USD. tETH is currently integrated across major DeFi protocols, including Compound, Pendle, Euler, Morpho and more. tETH will also be listed in the next few weeks with Aave. Beyond Ethereum, Treehouse is actively working to expand tAssets to Solana, BNB and additional chains in the upcoming months. Decentralized Offered Rates (DOR) Mechanism: DOR is a consensus-based benchmark system for setting reference rates in the defi space. It mirrors the role of benchmarks: LIBOR (London InterBank Offered Rate) and SOFR (Secured Overnight Financing Rate) in traditional financial makrets, but with a key difference: DOR is fully transparent and incentivizes rate submission accuracy. Traditional rates were prone to manipulation, as they relied on opaque and centralized inputs from a small panel of banks. DOR, however, leverages decentralized mechanisms to ensure accuracy and transparency in rate-setting.