Overview
Treehouse Protocol respectfully requests the inclusion of Treehouse ETH (tETH) in Programmatic Incentives v2 (PI v2) under the “ETH Stakers & Operators” category. This proposal aims to bootstrap adoption of tETH within EigenLayer, onboard $500M+ in existing liquidity and 65,000+ Treehouse users, and support the launch of the Treehouse Decentralized Offered Rate (DOR) AVS. By aligning incentives with EigenLayer PI, Treehouse can expand EigenLayer’s AVS set while strengthening restaked security in a slashable, incentive-driven framework.
About Treehouse Protocol
Treehouse is building the decentralized fixed income layer for crypto through two primitives:
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tAssets (Liquid Staking Token): tAssets unify fragmented PoS interest rate markets by aligning staking and lending yields. Our first product, tETH, has surpassed $500M in TVL and is integrated with Aave, Compound, Pendle, and Euler.
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DOR (Decentralized Offered Rate): A decentralized benchmark rate–setting mechanism, inspired by LIBOR/SOFR but transparent and incentive-aligned. DOR currently produces the Treehouse Ethereum Staking Rate (TESR) across multiple forward tenors, with a roadmap to expand into other crypto benchmark rates.
Together, tAssets and DOR create a fixed income standard for DeFi, with Treehouse positioned to bring both into the EigenLayer ecosystem.
The Treehouse DOR AVS on EigenLayer
The Treehouse AVS leverages EigenLayer Operators (“Panelists”) to secure benchmark rate predictions. Panelists, supported by Delegators, submit daily spot and forward rates. Rewards are distributed based on accuracy, while slashing ensures integrity.
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Panelists (EigenLayer Operators): Institutions such as Staking Rewards, A41, Pier Two, Selini Capital, Linkpool, RockX, Luganodes, and MatrixedLink are already engaged.
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Delegators: tETH and TREE restakers who back Panelists and share in their outcomes.
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Rewards Pool: Funded by Treehouse DAO and external referencing fees, with slashed stake redistributed or burned to maintain system integrity.
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Referencers: Protocols/entities that consume benchmark rates via referencing fees.
Crucially, Treehouse intends for tETH restaked capital to be slashable over time, aligning with EigenLayer’s north star of expanding AVSs that enforce slashing as a security mechanism.
How will the AVS work?
An overview of our architecture can be found in the figure below:
Deploying PI to Secure the Treehouse AVS
We propose that EigenLayer PI emissions (in EIGEN) be directed to the Treehouse AVS Rewards Pool, which then distributes rewards to Panelists and Delegators based on performance.
This structure integrates PI with Treehouse’s slashing/reward mechanism, creating a self-reinforcing feedback loop:
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Accurate Panelists are rewarded, unreliable ones are penalized.
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Delegators share in the outcomes of their chosen Panelists.
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Restakers gain confidence that performance directly secures both DOR outputs and EigenLayer itself.
Rationale for Incentivizing Treehouse AVS
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Expands EigenLayer AVS diversity: Introduces benchmark rate–setting as a new category of slashable AVS.
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Drives adoption: DOR is already live, with institutional Panelists and users generating fees.
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Brings scale: tETH has $500M+ liquidity and 65,000+ users who can immediately restake on EigenLayer.
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Strengthens EigenLayer security: By making tETH restakeable and eventually slashable, Treehouse adds meaningful capital to EigenLayer’s security budget.
Request
Treehouse requests that tETH be included in PI v2 under the “ETH Stakers & Operators” category. Programmatic Incentives will accelerate the onboarding of tETH capital, expand EigenLayer’s AVS set, and reinforce the ecosystem’s long-term security through a slashable, incentive-aligned benchmark rate AVS.