Brandon Goh, CEO of Treehouse, on Liquid Staking Tokens, Decentralized Offered Rates (DOR), and The Fixed Income Market | Ep. 410

DeFi

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February 17, 2025 07:34 EST

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Brandon Goh, CEO of Treehouse, joined the Cryptonews Spotlight podcast to dive into fixed income in crypto, decentralized offered rates (DORs), and the role of liquid staking in DeFi.

With a background in fixed-income trading at Morgan Stanley and Wells Fargo Securities, Brandon is bridging TradFi and DeFi with innovative tools that bring stability and efficiency to the digital asset space.

$600T Fixed Income Market and Its Crypto Opportunity

“The global fixed income market is worth a staggering $600 trillion. Compare this to equities—fixed income is nearly five times larger.”

Brandon explained how fixed income is the backbone of traditional finance yet remains underdeveloped in crypto. With institutions entering the space, he believes on-chain fixed-income products will be the next central growth area.

Why Fixed Income is the Toyota of Finance

“It might not grab anyone’s attention, but it’s dependable. It’s the go-to choice for individuals seeking a safe and predictable journey.”

Drawing an analogy to the Toyota Corolla, Brandon described fixed income as a stable and trusted asset class, making it ideal for institutional investors looking for yield and risk management solutions in crypto.

Bridging Traditional Fixed Income and DeFi

“We’re not trying to fix TradFi’s inefficiencies. We’re bringing a decentralized framework that expands fixed income into crypto,” Brandon says.

Treehouse is not replacing traditional finance but is instead creating DeFi-native solutions to bring predictable yield and benchmark rates to digital assets.

Introducing tAssets: Liquid Staking with an Extra Yield Twist

“tAssets provide additional yield on top of proof-of-stake rewards, dynamically optimizing interest rate arbitrage across lending protocols.”

tAssets (starting with tETH) enable users to stake their ETH while earning additional yield from DeFi interest rate inefficiencies, making the market more efficient while maximizing returns.

Power of Decentralized Offered Rates (DOR)

“DOR creates a decentralized benchmark rate, much like LIBOR did for TradFi—but built with transparency, accountability, and decentralization in mind.”

Brandon introduced Decentralized Offered Rates (DOR) as a benchmark system that unifies borrowing and lending rates across DeFi, similar to how LIBOR transformed fixed-income markets in the 1980s.

How DOR Could Revolutionize Crypto Finance

“We’re laying the foundation for a decentralized benchmark rate, solving the inefficiencies in DeFi’s fragmented interest rate markets.”

DOR brings a standardized reference rate to crypto lending, making fixed-income products like interest rate swaps, futures, and bond-like instruments possible on-chain.

Crypto’s Road to Mass Adoption: Institutional Barrier

“Institutional investors need predictable yield and structured products. Without that, they won’t move significant capital into DeFi.”

Brandon emphasized that institutions wait for crypto fixed-income products to mature before deploying billions in capital into decentralized finance.

User Experience Challenge: Why Boomers Aren’t in DeFi Yet

“If my parents want to earn yield, they’ll take a 2-4% bank rate over an 8-20% crypto yield because the experience is just too complex.”

Even with higher yields, crypto’s complex user experience is a major barrier. Brandon believes DeFi needs a “Steve Jobs moment”, where traditional banks integrate staking and DeFi products seamlessly.

Why Solana is Making Waves, But Ethereum Still Dominates

“Solana is making moves, but when it comes to TVL and institutional trust, Ethereum still leads.”

While Solana is gaining traction, Ethereum remains the dominant chain for DeFi and fixed-income innovations, making it the natural starting point for Treehouse’s tAssets and DOR.

Institutions Are Watching: Impact of Regulatory Shifts

“Traditional finance players are waiting for regulatory clarity before jumping into DeFi. We’re closer than people think.”

Brandon noted that recent regulatory moves, including major banks exploring crypto custody, signal a shift toward institutional DeFi adoption in the next 2-3 years.

Role of Competition in Driving Crypto Adoption

“At some point, someone will want to compete with traditional finance and start offering better rates. That’s when banks will be forced to move.”

Brandon predicts that competition, not regulation, will drive banks to integrate DeFi yields, as new players force the legacy system to evolve.

DOR’s Early Adoption and Growing Industry Recognition

“DOR was only publicly introduced in late 2024, but DeFi Llama has already given it its own category—it’s getting noticed fast.”

Despite being a new concept, DOR is quickly gaining traction, showcasing its need and use case in DeFi.

How Users Can Get Involved with Treehouse

“Users can participate in tAssets, earn arbitrage yield, and power the DOR ecosystem—all while benefiting from a more efficient market.”

Retail users can earn yield through tAssets, while institutions and protocols can leverage DOR for structured products and risk management.

Project Bamboo: Major Fixed Income Milestone in Crypto

“We’re working with top market makers and hedge funds to launch the first ever forward market on Ethereum’s staking rate.”

Brandon revealed Project Bamboo, an initiative aiming to introduce the first forward market for Ethereum staking rates, unlocking a $1 billion trading volume opportunity.

What’s Next for Treehouse and Fixed Income in Crypto?

“We’re building the foundation for a true fixed income market in DeFi—one that institutions and retail investors can trust.”

Brandon’s vision for Treehouse is to create the infrastructure for a thriving fixed-income crypto ecosystem, allowing billions in capital to flow into DeFi with confidence.