Decentralized Finance ( DeFi ) has long faced a significant challenge: the lack of reliable fixed income infrastructure. This issue has led to severe fragmentation in the market, with huge differences in trading interest rates for the same assets across different platforms. In the Ethereum ecosystem, the ETH interest rate differences among major lending protocols such as Aave, Compound, and Spark can reach several percentage points, making it difficult for ordinary investors to optimize returns and hindering the entry of institutional capital.

The LUNA and FTX crises of 2022 further highlighted the lack of risk management tools in the crypto market. In particular, the absence of standardized reference interest rates similar to LIBOR or SOFR in traditional finance makes it difficult to implement complex financial products such as interest rate swaps and floating rate notes on the blockchain, greatly restricting the development and maturity of the Decentralized Finance market.

To address these issues, a group of senior experts from traditional finance and the crypto field have come together to establish the Treehouse Protocol. The core goal of this project is to build a decentralized fixed income infrastructure layer for Decentralized Finance. After more than two years of in-depth research and development, Treehouse plans to officially launch its governance system in July 2025, marking an important milestone in the DeFi fixed income market.

The emergence of Treehouse is expected to bridge the gap between Decentralized Finance and traditional finance, bringing higher liquidity, lower risks, and more innovative opportunities to the market. By providing reliable benchmark Intrerest Rates and standardized fixed income products, Treehouse may attract more institutional investors into the DeFi space, promoting the growth and development of the entire ecosystem.

However, building such a complex financial infrastructure is not an easy task. The Treehouse team will face challenges in various aspects including technology, regulation, and market acceptance. They need to ensure that while guaranteeing the system's security and level of decentralization, their product is also user-friendly enough to truly address the pain points of the market.

With the launch of Treehouse, we can expect to see the DeFi market develop towards a more mature and efficient direction. This project could become an important bridge connecting traditional finance and Decentralized Finance, injecting new vitality and possibilities into the entire industry.