December 18, 2024
Treehouse submitted a proposal on October 22, 2024, requesting $30,000 in funding to support the integration of its tETH (Liquid Staking Token 2.0) as collateral on Compound’s V3 platform. The proposal outlines plans to deploy tAssets’ automated borrowing strategy within Compound, aiming to increase borrowing and lending activity while improving liquidity in the Ethereum markets. By integrating wstETH (wrapped staked ETH) as collateral, the strategy seeks to enhance market efficiency and reduce the risk of bad debt in Compound’s ETH markets.
The integration of tETH will provide Compound users with an opportunity to supply tETH and borrow ETH, allowing them to maintain staking rewards while increasing exposure. This move aligns with Compound’s goals to expand collateral options and foster long-term activity on the platform. Treehouse intends to extend this integration to other supported Layer 2 chains, further diversifying Compound’s offerings. The strategy focuses on long-term sustainability by leveraging arbitrage opportunities and enhancing engagement within the DeFi ecosystem.
Treehouse, founded by Brandon Goh, Ben Loh, and Bryan Goh, focuses on building decentralized fixed income products for digital assets. Its primary product, tETH, addresses the fragmentation of interest rate markets in Proof of Stake (PoS) chains. Since its launch in September 2024, Treehouse has achieved a Total Value Locked (TVL) of $113 million and continues to expand its reach across additional Layer 2 ecosystems.
About Treehouse
Treehouse is focused on developing decentralized fixed income products for digital assets. Its flagship offering, tETH, is designed to unify fragmented interest rate markets on PoS chains and amplify staking yields through interest rate arbitrage. The protocol aims to provide transparent and accessible financial solutions across decentralized platforms.
Website: https://www.treehouse.finance/
X: @TreehouseFi
About Investor
Compound
Compound is a decentralized protocol for lending and borrowing crypto assets, allowing users to earn interest or take loans by using cryptocurrency as collateral. It facilitates lending and borrowing in a decentralized manner, offering a broad range of assets, including Ethereum and USDC. Compound aims to create an open financial ecosystem by expanding its range of collateral options and enhancing liquidity.
Location: San Francisco
Website: https://compoundlabs.xyz/
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