TradFi has a core concept called "risk-free interest rate" - the yield on U.S. Treasury bonds is the benchmark, and all asset pricing cannot avoid it. However, DeFi has never had this unified benchmark, with various protocols offering a wide range of yields, making it difficult for users to distinguish who is reliable and who is toxic.

Treehouse has identified this issue. They believe that BTC mining profits are easily affected by electricity costs and hardware expenses, making them too volatile. However, ETH Staking is different—cash flow from block rewards + transaction fees is relatively stable and is hardly influenced by external variables. In other words, ETH Staking has the potential to become the "risk-free interest rate" in the crypto world.

The DOR mechanism they promote is to standardize this idea. By using on-chain data + decentralized consensus, it generates a credible interest rate curve, allowing all DeFi products to have a reference benchmark.

What does this mean? Retail investors can more clearly compare the risk premiums of different yield products; institutions can obtain a reliable set of risk management tools. To attract genuine institutional funds, DeFi must have such infrastructure. Treehouse's exploration in this wave is, to some extent, addressing the shortcomings of DeFi.