In the field of Blockchain finance, a long-standing issue is the lack of a reliable credit assessment mechanism. Investors often find it difficult to accurately assess the real returns and potential risks of various financial products, mostly relying on personal feelings, recommendations from opinion leaders, or market rumors. However, Treehouse is quietly changing this situation by building an innovative "Interest Rate Credit Recognition System."

The core of this system is TESR (Treehouse Ethereum Savings Rate), which can be seen as an on-chain interest rate benchmark. TESR is not just a simple median of market annualized returns; more importantly, it possesses the characteristics of being open, transparent, and verifiable, generated entirely on-chain with a clear calculation formula and data basis. This makes TESR an important reference indicator for other financial products.

For ordinary users, the existence of TESR makes it easier to identify profit bubbles in the market. For example, when a project claims to provide a 30% annual interest rate, investors can compare it with the current TESR. If the TESR is 6%, then investors need to carefully consider the source of the remaining 24% profit: is it from a unique investment strategy, or a temporary inflation subsidy? Is it early-released profit, or a high-risk operation that is difficult to sustain?

The introduction of TESR is equivalent to equipping each financial product with a "risk thermometer," helping investors better assess potential risks.

For project parties, TESR provides a reliable interest rate linkage mechanism. Emerging stablecoin projects or wealth management protocols no longer need to "fabricate" yields out of thin air, but can directly base their product yield structure on TESR, such as stating "the yield of our product is linked to TESR", which will undoubtedly increase the credibility of the project.

Treehouse's innovative initiative is expected to bring greater transparency and credibility to the on-chain wealth management market, driving the entire industry towards a more mature and regulated direction. With the improvement and promotion of this system, we may usher in a new era of on-chain finance, where rational investment and risk management will become mainstream.