The Treehouse financial ecosystem is welcoming an important development with the launch of the governance token TREE, marking a significant step in the field of Decentralized Finance. The main functions of the TREE token include participating in protocol governance and supporting the DOR staking consensus mechanism, while also providing holders with a channel for value returns.

The revenue model of Treehouse is noteworthy, which includes a 20% performance fee on arbitrage profits, as well as a 2% quick redemption fee. These income sources lay the foundation for the sustainable development of the protocol. In the future, Treehouse may further reward TREE holders through token buybacks or profit-sharing mechanisms to enhance the positive cycle of the ecosystem.

Currently, Treehouse's estimated annual revenue is around several hundred thousand dollars, but its growth potential should not be underestimated. With the increase in Total Value Locked (TVL) and the widening of interest spreads, the protocol's yield performance is expected to improve significantly. In comparison to similar projects like Lido and Pendle, their token price-to-sales ratio (P/S) usually ranges between 10 to 20 times, which provides a reference for evaluating Treehouse's potential valuation.

The development trajectory of Treehouse is remarkable. As early as the fourth quarter of 2024, its tETH product achieved significant success, rapidly accumulating over 12,000 ETH (approximately $28 million) in TVL. Entering 2025, Treehouse continued to expand its business landscape, not only extending its services to second-layer networks such as Arbitrum but also launching the TESR interest rate index, showcasing strong innovative capability and market adaptability.

For investors looking to gain a deeper understanding of the value of the TREE token, it is crucial to pay attention to the following key indicators: the growth trend of TVL, the performance of the protocol's fees, the level of market spread, and the specific design details of the token. These factors will collectively determine Treehouse's position and long-term development potential in the Decentralized Finance ecosystem.

As the Decentralized Finance market continues to mature, innovative projects like Treehouse with strong growth potential will undoubtedly attract more attention from investors and users. However, like all investments, participants should carefully assess risks, thoroughly understand the project's background and market dynamics, and make informed decisions.