Recently, the Decentralized Finance ( DeFi ) sector has welcomed a significant collaboration. Treehouse announced the completion of a $400 million strategic financing round, with a strong lineup of investors, including well-known institutions like Compound Labs and QCP Capital. This collaboration not only injects robust financial support into Treehouse but also signifies that its Tree token officially enters the arena of decentralized interest rate derivation.

The core of this collaboration lies in the deep integration of the DOR mechanism of the Tree token with the borrowing protocol of Compound. This innovation allows users to participate in on-chain interest rate predictions by holding Tree tokens, with a potential annualized return of up to 75%. This undoubtedly provides new investment options for DeFi enthusiasts.

It is worth noting the Panelist project of Treehouse, which is an important landing scenario for this collaboration. This project allows TREE token holders to become "Interest Rate Prediction Experts" by staking, voting on benchmark interest rates including TESR. The top 10% of users with the highest prediction accuracy will share half of the protocol's transaction fees. This innovative "risk-sharing" mechanism not only enhances the reliability of interest rate data but also creates the first decentralized interest rate derivation ecosystem in the DeFi space.

Currently, the Tree token has reached integration agreements with several well-known DeFi protocols such as Aave and Euler. Users can borrow USDC for arbitrage operations while staking tETH, with an expected annualized yield of up to 9.3%.

From the market performance perspective, the interest rate prediction market of the Treehouse protocol shows strong growth momentum. The average daily trading volume has surpassed $8 million, a significant increase of 320% compared to last month. Even more notably, the participation of institutional users has significantly increased, rising from 15% to 38%, indicating that the project is gaining recognition from more professional investors.

With the continuous development of the DeFi market, innovative projects like the Tree token are reshaping the landscape of Decentralized Finance. They not only provide users with new profit channels but also drive the entire industry towards a more mature and diversified direction. However, investors must still carefully assess risks and conduct thorough research and preparation when participating in such emerging financial products.