In the financial sector, a unified Interest Rate Benchmark is crucial for product pricing. In the TradFi system, benchmark rates such as LIBOR and SOFR provide pricing references for financial products worth trillions of dollars. Although these benchmark rates involve manipulation risks and centralization issues, they at least provide a common reference standard for the market.

However, in the field of decentralized finance (DeFi), the determination of interest rates is like a headless fly, with various products' yields and borrowing costs operating independently, lacking a unified benchmark. This situation severely restricts the innovation of fixed-income products in the DeFi space.

To address this issue, TreehouseFi has proposed an innovative solution: DOR (Decentralized Offer Rate). This mechanism combines market data and expert forecasts, ensuring both transparency and avoiding single points of failure, and is expected to bring a level of certainty to the DeFi market similar to that of TradFi.

The emergence of DOR has opened up new possibilities in the DeFi space. For example, the introduction of Interest Rate Forward Agreements (FRAs) allows users to lock in future borrowing rates in advance, essentially enabling 'futures trading' on yields. These innovative products can be traded and settled directly on the blockchain, greatly improving efficiency.

It is worth noting that in the TradFi market, FRAs account for 10% of the fixed income derivatives market. Currently, the Ethereum staking scale has reached 116 billion USD. If the DeFi market can capture 10% of this, it would mean a huge market potential of 11 billion USD.

The introduction and implementation of DOR is expected to not only address the long-standing issue of the lack of a unified interest rate benchmark in the DeFi sector, but also potentially drive the entire industry towards a more mature and regulated direction. This innovation may become a key driving force for leapfrog development in the DeFi market.