The prototype of the "Fed" in DeFi? How Treehouse opens a new era of encryption fixed income.

DeFi has become a very mature infrastructure, and there are mainly three major directions for the future: integrating yields, smart arbitrage, and merging with CeFi.

The recently launched project Treehouse on Binance spot trading implies these three directions, and it can be said to be a typical example.

We can use Treehouse to glimpse the future development trends of the DeFi sector.

1. Transition from Fragmentation to Standardization in DeFi The current interest rate environment in DeFi is highly fragmented, influenced by liquidity pools, types of collateral, and market sentiment, leading to significant fluctuations in yields that cannot support complex fixed income products such as bonds or derivatives.

To address this issue, Treehouse has introduced DOR (Decentralized Offered Rates), which is a decentralized benchmark interest rate framework.

This is a "standard interest rate system" decided by everyone together, rewarding those who make accurate predictions like a game, avoiding manipulation.

It can help develop more products, such as tools for hedging risks. Currently, the first DOR is targeting the interest rates of Ethereum staking.

This mechanism can become a "anchor point" for DeFi interest rates, similar to the role of the Federal Reserve fund rate in TradFi.

This also paves the way for institutions to enter Decentralized Finance, as institutions are tired of high volatility but favor predictable returns.

2. Intelligent Arbitrage Model Users deposit ETH or LSTs (Liquid Staking Tokens, such as stETH, rETH) to obtain tAssets (such as tETH), participate in automated interest rate arbitrage strategies, and earn real yield.

In other words, you deposit Ethereum or similar assets, and it will smartly and automatically "Arbitrage" (find high interest opportunities) in different places, helping you earn an annual return of 4% or higher.

This is different from the passive holding of traditional staking; instead, it actively captures the price difference between lending/staking interest rates, achieving compound returns of 4% to several tens of percent.

At the same time, tAssets can seamlessly integrate with protocols such as Aave and Curve, supporting lending and liquidity provision, creating a closed-loop ecosystem.

3. The Integration of CeFi and DeFi Previously, everyone viewed DeFi as an independent financial system, but in this cycle, on-chain US stocks, on-chain US bonds, and other RWA assets have emerged in the market.

This means that traditional assets are being brought on-chain and are integrating with the financial infrastructure on the chain.

Therefore, the integration of CeFi and Decentralized Finance is a major trend.

DeFi needs the stability of CeFi to attract trillion-dollar institutional funds.

Fixed income is the "missing link" of DeFi and a key driver for mainstream adoption.

So, it's not just CeFi that needs DeFi, but DeFi also needs CeFi.

summarize

Through the above analysis, we can see that Treehouse is like a "stable income bank" in Decentralized Finance, helping users earn reliable interest on digital assets (such as Ethereum) without worrying about the chaotic changes in interest rates.

Treehouse fills the gap in Decentralized Finance, making it easier for ordinary people to earn stable money.

In the long term, if the crypto market rises, Treehouse may become the "benchmark tool" for DeFi, similar to the interest rate standard in traditional finance.

In short, the positioning of the Treehouse project represents the future development direction of Decentralized Finance, and it is worth paying close attention to.