In the field of Crypto Assets, the understanding of DeFi is often limited to basic functions such as lending, market making, and Mining. However, the key challenge in the current development of DeFi actually lies in establishing a Benchmark Intrerest Rate and a system of underlying assets.

In traditional financial markets, the scale of fixed income products far exceeds that of the stock market. Whether it is daily wealth management products, bonds, or funds, they all rely on a core indicator: the benchmark interest rate. This indicator provides the pricing and interest rate spread standards for the entire market.

However, the Crypto Assets ecosystem has not yet formed a unified on-chain Benchmark Interest Rate. The interest rate market within the Ethereum ecosystem is highly fragmented, with borrowing or staking rates varying across major platforms such as Aave, Compound, and Lido, making it difficult to serve as a basis for standardized pricing.

In this context, TreehouseFi has proposed two innovative products to address this issue:

First is tAsset (such as tETH), which is an advanced version of liquid staking tokens. It not only earns the basic rewards from PoS but also gains additional profits through interest rate arbitrage. tETH can be seen as an upgraded version of ETH, capable of generating "risk-neutral" yield on-chain, and can be used for various Decentralized Finance operations.

Secondly, DOR (Decentralized Offering Rate) aims to provide a unified Benchmark Interest Rate for the Decentralized Finance ecosystem. This attempt may open new avenues for the development of the DeFi fixed income market.

These innovative measures indicate that Decentralized Finance is evolving towards a more mature and complex financial system. With the resolution of Benchmark Interest Rates and underlying asset issues, we may witness significant breakthroughs in the fixed income market within DeFi, which will bring new opportunities and challenges to the entire Crypto Assets ecosystem.