In today's rapidly evolving DeFi ecosystem, it seems we have overlooked a key question: why has there been a persistent lack of a unified "on-chain interest rate center"?

Although we have USDT as the representative of stablecoins, Uniswap leads decentralized trading, and Aave dominates the lending market, there has always been a gap in interest rate pricing. This is precisely the core area that Treehouse aims at; its goal is not simply to hype up coin issuance, but to commit to becoming the "interest rate central bank" of the on-chain financial system.

The TESR (Treehouse Equilibrium Stability Rate) launched by Treehouse can be seen as the "on-chain version of Libor" or the "DeFi version of the federal funds interest rate." This interest rate is not determined by a single entity, but is generated through the DOR (Decentralized Observation Rate) mechanism, which takes into account on-chain actual transaction data, staking annualized yield, swap pricing, and liquidation demand.

In the future, on-chain lending, forward contracts, stablecoin yields, and more may all be based on this interest rate. This innovation fills the long-standing "interest rate vacuum" in the DeFi space. Currently, the interest rate system in DeFi has many problems: each protocol uses independent algorithms, annualized yields are easily manipulated and highly volatile, and there is a lack of transparency and reliable reference benchmarks.

Such a situation is unimaginable in traditional financial markets. The emergence of Treehouse is expected to bring a unified, transparent, and reliable interest rate anchor to DeFi, which is of great significance for the healthy development of the entire ecosystem.

As Treehouse continues to improve its ecosystem, we may be witnessing DeFi moving towards a more mature and regulated direction. This not only helps to enhance market efficiency but may also attract more traditional financial participants into the DeFi space, driving innovation and development across the industry.