What is Treehouse? | $TREE Explained

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• WHAT IS TREEHOUSE (TREE)?
• HOW DOES TREEHOUSE (TREE) WORK?
• WHAT IS $TREE?
• TREE TOKENOMICS
• FUTURE OUTLOOK OF TREEHOUSE (TREE)
• DISCLAIMER
• WRITER’S INTRO

CONTENT

Treehouse (TREE) is a decentralized fixed-income DeFi platform offering yield solutions with DOR, tAssets, and tETH, reshaping financial benchmarks on blockchain.

WHAT IS TREEHOUSE (TREE)?

Treehouse (TREE) is a decentralized fixed-income (DeFi Fixed Income) platform that provides crypto-based financial products. Its mission is to deliver transparent and sustainable yield solutions through blockchain technology, positioning itself as a distinctive player in the competitive DeFi landscape.

The concept of fixed income refers to investments that generate stable and predictable returns over time. For example, if an investor lends $1,000 and earns $50 in annual interest for five years, that $50 represents fixed income. Because of their predictability and risk management advantages, fixed-income products are often considered the backbone of a well-structured investment portfolio.

📌 Interest Rate Swaps & Yield Solutions

Treehouse (TREE) aims to facilitate interest rate swaps, enabling the same asset to be traded across different platforms at comparable rates, thereby eliminating inefficiencies in the crypto market. To achieve this, the platform introduces two core DeFi mechanisms:

• tAssets: Yield arbitrage and hedging tools designed for rate optimization and risk management.

• DOR: A decentralized benchmark rate creation tool that provides standardized yield solutions and aggregates rates across the market.

These mechanisms are built to address liquidity fragmentation in the DeFi ecosystem, allowing investors to achieve more reliable returns in a less volatile environment.

📌 tETH and Optimized Returns

One of the flagship products within Treehouse (TREE) is tETH, a tool designed to enhance yield strategies and optimize interest rate management. Users can stake liquid staking tokens (LSTs) along with native assets to earn returns.

These returns are composite in nature, combining market efficiency yield (MEY) with annual percentage yield (APY). By integrating “risk-free rates” with native staking rewards, tETH provides investors with a more efficient way to maximize returns in uncertain market conditions.

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HOW DOES TREEHOUSE (TREE) WORK?

Treehouse (TREE) introduces two essential components—Decentralized Oracle Rate (DOR) and Treehouse Assets (tAssets)—to achieve its vision of creating fixed-income products in the digital asset ecosystem. These tools provide a foundation for standardized yield benchmarks and efficient rate management within DeFi.

1. Decentralized Oracle Rate (DOR)

The Decentralized Oracle Rate (DOR) is a blockchain-based interest rate computation framework developed by Treehouse (TREE). Similar to how traditional finance relies on LIBOR or SOFR as benchmarks, DOR standardizes the fragmented rates across DeFi protocols, offering a single, reliable benchmark.

(source: treehouse.finance)

Unlike simple oracles or price feeds, DOR leverages community-driven consensus mechanisms to aggregate shared data while maintaining transparency. Key participants in the DOR ecosystem include:

• Operators: System coordinators responsible for publishing and maintaining benchmark data. For example, Treehouse acts as the first operator of DOR.

• Working Group Members: Entities such as market makers or lending platforms that provide specialized rate data or forecasts.

• Delegators: Users who delegate assets to working group members and retain ownership rights while allowing trusted entities to represent their data in DOR submissions.

• Reference Users: Protocols or applications (such as DeFi lending markets) that adopt DOR as a standardized pricing reference.

DOR produces daily market rate submissions at fixed intervals for 1-day, 7-day, and 30-day tenors. Its first benchmark curve is the Treehouse Ethereum Staking Rate (TESR), derived from Ethereum staking markets. This provides a transparent benchmark curve that enables the design of more predictable lending and borrowing products in DeFi.

✅ Treehouse Assets (tAssets)

Treehouse Assets (tAssets) are tokenized representations of liquid staking tokens (LSTs). They are designed to eliminate fragmented yields and offer a unified yield optimization tool within DeFi. By participating, LST holders can earn yield through rate strategies while also receiving base staking rewards.

To enhance security and minimize risk exposure, tAssets are actively managed. The first version of tAssets is tETH, created to resolve Ethereum ecosystem fragmentation and supported by Treehouse’s Active Validation Services (AVS). This ensures stronger security guarantees while maximizing yield efficiency.

✅ tETH: The First Treehouse Asset

tETH is the first tAsset launched by Treehouse (TREE), representing a liquid staking token that combines Ethereum staking yields with advanced rate strategies. It leverages Proof of Stake (PoS) rewards while simultaneously offering access to broader DeFi applications.

As a core part of DOR, tETH provides crypto markets with a benchmark-aligned, secure rate product. By reallocating ETH or LST into lending and staking platforms, tETH balances borrowing and lending activities. This ensures yields remain consistent with Ethereum’s staking rates, while enhancing market rate efficiency and improving APY through arbitrage and rate swaps.

By democratizing access, tETH allows not only institutions but also retail investors to participate in rate strategies previously limited to advanced market participants. This significantly strengthens fixed-income opportunities in crypto, laying the groundwork for a more predictable financial market built on blockchain.

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WHAT IS $TREE?

The $TREE token is the governance and utility asset of the Treehouse ecosystem, designed to power its decentralized fixed-income platform. Within Treehouse Finance, TREE plays a central role in ensuring stability and incentivizing ecosystem growth.

✏️ According to the whitepaper, the main use cases of TREE include:

• Query Fees: Companies that use DOR data for smart contracts, product development, or settlements pay query fees in TREE, ensuring data efficiency and transparency.

• Working Group Collateral: To guarantee the accuracy and consistency of submitted DOR data, members must stake TREE or tAssets to participate.

• Observation Rewards: Operators and validators earn TREE for submitting accurate interest rate forecasts, strengthening the reliability of the DOR system.

• Governance: Holders can participate in protocol governance, influencing key ecosystem parameters and voting on proposals.

• DAO Funding: The Treehouse DAO allocates TREE towards ecosystem partnerships, product development, and research initiatives, fostering long-term sustainability.

🪙 TREE Token Key Information

• Name: Treehouse

• Symbol: TREE

• Contract Address: 0x77146784315Ba81904d65446968e3a7c196d1f3

• Standard: ERC-20

• Total Supply: 1,000,000,000

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TREE TOKENOMICS

The total supply of TREE is capped at 1 billion, distributed across community members, investors, the core team, and the DAO treasury. The allocation framework is designed to promote long-term engagement, ecosystem growth, and sustainable incentives.

🔍 Detailed Distribution:

• Community Rewards – 20%: Incentives for long-term participation, staking, and governance activities.

• Strategic Investors – 17.5%: Allocated to strategic partners and early backers, subject to vesting schedules.

• Team Allocation – 12.5%: Distributed to the core development team with a structured vesting plan.

• Treasury (DAO) – 12.5%: Managed by the DAO for ecosystem development and strategic reserves.

• Community Airdrop – 10%: Distributed to early adopters and active contributors.

• Ecosystem Fund – 10%: Dedicated to supporting developers, integrations, hackathons, and future initiatives.

• Core Contributors – 5%: Rewards for significant contributors outside of the core team.

• Exchange & Partnerships – 3.75%: Used for liquidity incentives and exchange listings.

• Future Airdrops – 5.75%: Reserved for future community campaigns and post-launch initiatives.

• Liquidity Reserves – 3%: Maintained for market health and liquidity pool support.

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FUTURE OUTLOOK OF TREEHOUSE (TREE)

Treehouse (TREE) is more than just another DeFi token—it represents an experiment in financial infrastructure, reimagining traditional benchmark interest rate systems on a decentralized blockchain foundation.

The success of this vision depends heavily on the participation of TREE holders and users. As Treehouse expands to integrate with more asset classes and collaborates with additional protocols, its influence within the DeFi and broader financial ecosystem will continue to grow.

However, the key challenge for Treehouse (TREE) lies in executing this ambitious roadmap amidst intense competition, while building a strong and sustainable user base. Overcoming this will determine the project’s long-term growth and impact.

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