As DeFi’s fixed income market evolves, Treehouse is taking the next step toward institutional adoption.
We’re collaborating with Pascal Protocol to pilot smart clearing infrastructure for Forward Rate Agreements (FRAs) built on the Treehouse Ethereum Staking Rate (TESR) Curve, under the Decentralized Offered Rates (DOR) framework.
This marks a major milestone in advancing programmable, decentralized infrastructure that supports the next generation of fixed income products in crypto.
Expanding the Treehouse Fixed Income Stack
At Treehouse, we’re building the foundation for crypto-native interest rate markets. That starts with tAssets—yield-bearing tokens like tETH—and DOR, our benchmark consensus framework that brings transparency and structure to DeFi interest rates.
TESR, the Treehouse Ethereum Staking Rate, is the first rate published under DOR. It aggregates validator data and expert panelist forecasts to establish a transparent benchmark for staking yield. TESR is already referenced by institutions, including FalconX, for pricing yield-linked products.
Now, we’re piloting the next layer: smart clearing for interest rate derivatives.
By integrating Pascal Protocol’s programmable clearing infrastructure, we aim to test and validate secure settlement for TESR-based FRAs—enabling trustless, capital-efficient execution for fixed income strategies. This PoC will lay the groundwork for scalable clearing across DOR-linked products.
Why Smart Clearing Matters
Clearing infrastructure is critical for any functioning interest rate market. In TradFi, it ensures trust, eliminates counterparty risk, and supports market efficiency.
Bringing these mechanisms on-chain is essential to scaling DeFi fixed income.
This pilot unlocks:
- Smart clearing for TESR-based FRAs
- Enhanced capital efficiency in rate-linked DeFi products
- Infrastructure that enables real-world adoption of Treehouse benchmarks
By combining consensus-driven benchmark rates with atomic settlement logic, Treehouse is extending its infrastructure from transparent pricing into institutional-grade execution.
What’s Next
This is the first of several planned initiatives to expand the Treehouse fixed income stack. The PoC will launch with select institutional partners, alongside joint educational efforts and appearances at upcoming events.
As Treehouse continues to scale the use of DOR and tAssets across DeFi, we remain committed to building secure, interoperable infrastructure that connects yield, benchmarks, and products in one seamless ecosystem.
The future of decentralized fixed income is taking shape—and Treehouse is at the center of it.
About Treehouse 🌳
Treehouse, a digital assets infrastructure firm and the decentralized arm of the parent company Treehouse Labs, is at the forefront of revolutionizing the decentralized fixed income market. Treehouse Protocol introduces innovative fixed income products and primitives, starting with its first tAsset, tETH, a liquid staking token that empowers its users to participate in the convergence of on-chain Ethereum interest rates while retaining the flexibility to engage in DeFi activities.
Treehouse Protocol is also pioneering the Decentralized Offered Rates (DOR) consensus mechanism for benchmark rate setting, enabling a range of fixed income products and primitives into digital assets. Treehouse is dedicated to creating safer and more predictable return alternatives for both individual investors and institutions.
Website: https://treehouse.finance
X: https://x.com/TreehouseFi
Discord: https://discord.gg/treehousefi
About Pascal
Pascal Protocol is pioneering the future of institutional DeFi with the Smart Clearing Protocol—an atomic, trustless settlement layer purpose-built for capital markets. PascalC delivers programmable, high-performance clearing infrastructure for derivatives, yield products, and complex financial flows across decentralized networks. From fixed income to commodities and energy, Pascal is a unified clearing layer to bring multiple asset classes on-chain. Headquartered in Zug, Switzerland, Pascal is unlocking capital efficiency at scale for traders, protocols, and institutions seeking the next evolution of financial infrastructure.
Website: https://pascalprotocol.com
X: https://x.com/pascalclearing
