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Treehouse Official
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FalconX Launches First Tradable Ethereum Staking Rate Forwards (FRAs) Referencing Treehouse Ethereum
Milestone for Digital Asset Markets
FalconX, the leading institutional digital asset prime broker, has launched the first live, tradable market for Forward Rate Agreements (FRAs) referencing Ethereum staking yields, benchmarked to the Treehouse Ethereum Staking Rate (TESR).
Institutional participants including Edge Capital, Monarq, Mirana, and more are already involved, as FalconX facilitates the first Forward transactions based on TESR. This isn’t just another market launch, it’s a turning point and marks a breakthrough in bringing rate-based financial instruments to digital assets.
For the first time, institutions can hedge, lock in, and trade ETH staking yields using standardized benchmark infrastructure. In other words, what interest rate markets have done for decades in traditional finance is now happening on-chain with Ethereum staking and TESR.
The launch establishes a scalable derivatives market that is similar to traditional instruments like interest rate swaps and forwards. Since Ethereum’s transition to proof-of-stake in 2022 (known as the Merge), staking yields have effectively become the network’s native interest rate. TESR FRAs give institutions and market participants the tools they need for risk management, yield optimization, and strategic positioning.
Why This Matters
In traditional finance, benchmark rates such as the London Interbank Offered Rate (LIBOR) and Secured Overnight Financing Rate (SOFR) underpin trillions of dollars in derivatives and fixed income contracts. They are the foundation that makes everything from mortgages to corporate bonds work.
Until now, crypto has lacked this foundation. Rates existed, but they were fragmented, opaque, and not standardized. That meant no way to build serious fixed income markets.
TESR closes this gap by serving as a crypto-native equivalent to benchmark rates like LIBOR or SOFR, introducing transparent benchmarks and standardized contracts that bring institutional-grade interest rate markets to digital assets, unlocking an entirely new category of financial markets in DeFi.
What is TESR?
TESR, or the Treehouse Ethereum Staking Rate, is the first benchmark published under the Decentralized Offered Rates (DOR) framework.
Consensus-driven: TESR aggregates validator data with expert panel inputsTransparent: Updated daily to reflect Ethereum’s staking yield environmentReal Adoption: Now referenced in the first tradable ETH staking rate forwards referencing TESR, piloted by FalconX
TESR provides a reliable benchmark that can be integrated into financial products across DeFi and institutional markets.
Introducing TESR FRAs
TESR FRAs, facilitated through FalconX’s institutional brokerage infrastructure, allow market participants to:
Hedge against ETH staking rate volatilitySpeculate on future ETH staking yieldsStructure exposure to Ethereum’s staking yield curve
With a structure similar to traditional interest rate swaps and forwards, these contracts bring institutional-grade rate management tools to digital assets. Their familiar framework lowers the barrier for funds, trading firms, and long-term ETH holders to participate in Ethereum markets, creating new opportunities for yield strategies and forward-looking risk management.
New to Forward Rate Agreements (FRAs)? Learn more from our explainer blog, The Rate Renaissance II to understand how FRAs work, why they matter, and how they’re becoming the foundation of fixed income in DeFi.
Institutional Participation
The launch has already drawn strong interest from leading institutional investors and hedge funds. A number of firms are either actively trading TESR FRAs or preparing to participate. This early activity demonstrates that benchmark-based derivatives are not only viable, but in demand among some of the most sophisticated players in digital assets.
Participants include:
AlgoquantAugustEdge CapitalMonarqGallet CapitalLeadBlockBitPandaMEV CapitalMirana VenturesMoonvaultRockawayXJPEG TradingWave Digital Assets
Their involvement highlights a bigger story: institutions now see TESR as the legitimate benchmark for staking yields, and FRAs as the gateway to a broader fixed income market in Ethereum. This confidence validates DOR’s role in setting transparent, standardized rates, and signals that the liquidity and infrastructure needed for rate-based products are falling into place.
At the same time, this launch marks the beginning of a deeper, continuously accessible market. It shows that institutions now have the confidence, infrastructure, and tools to participate in Ethereum’s emerging fixed income ecosystem, powered by the Decentralized Offered Rates (DOR) framework.
Why TESR FRAs Matter
The launch of TESR FRAs has been recognized as a major step forward in building fixed income markets for digital assets.
Ivan Lim, Senior Derivatives Trader at FalconX, emphasized how this launch brings risk management tools into crypto:
“FalconX is proud to launch TESR FRAs, which give institutions access to sophisticated tools for managing staking rate exposure. This marks an important step forward in integrating institutional-grade risk management in crypto markets.”
Michael Ashby, CEO of Algoquant and former Head of Point72 Digital Assets, stressed the importance of managing rate exposure:
“The ability to manage ETH staking rate exposure is critical for maturing digital asset markets. Staking rate derivatives like TESR FRAs offer a clear, efficient way to manage rate risk and enhance capital deployment.”
Nicholas Gallet, CEO of Gallet Capital, noted that these instruments are long overdue:
“Staking rate derivatives like TESR FRAs are long overdue, especially with the surge of institutional capital into crypto over the past year. For the first time, long-term crypto holders can hedge against staking yield volatility and express forward-looking views in a format that is similar to traditional finance.”
For Treehouse, the launch reinforces TESR’s role as a benchmark and shows how DOR can anchor a broader fixed income layer in crypto.
Brandon Goh, Co-founder and CEO of Treehouse, underscored the importance of TESR FRAs for DeFi fixed income:
“The introduction of TESR FRAs signals a key milestone in building the fixed income layer for digital assets. With TESR and the infrastructure we’ve built through DOR, we’re enabling institutions and staking providers to hedge, price, and manage rate volatility—essential functions in any mature financial ecosystem.”
Ultimately, TESR FRAs showcase the massive potential of DOR benchmarks like TESR to unlock scalable, institutional-grade products in crypto. As more protocols and institutions build around standardized benchmarks, DOR rates will serve as the foundation for lending platforms, swaps, and structured yield strategies, driving the next phase of growth in decentralized fixed income.
What’s Next
Unlike one-off proof-of-concept trades, TESR FRAs form part of a live, continuously accessible market. FalconX’s execution layer and Treehouse’s benchmark publishing infrastructure enable standardized documentation, trading workflows, and recurring participation, laying the groundwork for deeper liquidity.
Looking ahead, TESR will anchor a broader suite of rate-based innovations in digital assets, including:
Interest rate swapsETH lending productsStructured yield protocols built on the DOR standard
This launch is just the start. Together, FalconX and Treehouse are establishing the foundations of crypto’s fixed income layer—where transparent benchmarks, liquid derivatives, and institutional infrastructure converge to support the next generation of financial products.
About Treehouse 🌳
Treehouse, a digital assets infrastructure firm and the decentralized arm of the parent company Treehouse Labs, is at the forefront of revolutionizing the decentralized fixed income market. Treehouse Protocol introduces innovative fixed income products and primitives across chains through tAssets, liquid staking tokens that empowers its users to participate in the convergence of on-chain interest rates while retaining the flexibility to engage in DeFi activities.
Treehouse Protocol is also pioneering the Decentralized Offered Rates (DOR) consensus mechanism for benchmark rate setting, enabling a range of fixed income products and primitives into digital assets. Treehouse is dedicated to creating safer and more predictable return alternatives for both individual investors and institutions.
Website: https://treehouse.finance
X: https://x.com/TreehouseFi
Discord: https://discord.gg/treehousefi
About FalconX
FalconX is a leading digital asset prime brokerage for the world’s top institutions. We provide comprehensive access to global digital asset liquidity and a full range of trading services. Our 24/7 dedicated team for account, operational and trading needs enables investors to navigate markets around the clock. FalconX Bravo, Inc., a FalconX affiliate, was the first CFTC-registered swap dealer focused on cryptocurrency derivatives.
The company is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management.
FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta.
Website: https://www.falconx.io/
X: https://x.com/FalconXGlobal
Linkedin: https://www.linkedin.com/company/thefalconx/
$TREE #Treehouse #FixedIncome #DOR
FalconX, the leading institutional digital asset prime broker, has launched the first live, tradable market for Forward Rate Agreements (FRAs) referencing Ethereum staking yields, benchmarked to the Treehouse Ethereum Staking Rate (TESR).
Institutional participants including Edge Capital, Monarq, Mirana, and more are already involved, as FalconX facilitates the first Forward transactions based on TESR. This isn’t just another market launch, it’s a turning point and marks a breakthrough in bringing rate-based financial instruments to digital assets.
For the first time, institutions can hedge, lock in, and trade ETH staking yields using standardized benchmark infrastructure. In other words, what interest rate markets have done for decades in traditional finance is now happening on-chain with Ethereum staking and TESR.
The launch establishes a scalable derivatives market that is similar to traditional instruments like interest rate swaps and forwards. Since Ethereum’s transition to proof-of-stake in 2022 (known as the Merge), staking yields have effectively become the network’s native interest rate. TESR FRAs give institutions and market participants the tools they need for risk management, yield optimization, and strategic positioning.
Why This Matters
In traditional finance, benchmark rates such as the London Interbank Offered Rate (LIBOR) and Secured Overnight Financing Rate (SOFR) underpin trillions of dollars in derivatives and fixed income contracts. They are the foundation that makes everything from mortgages to corporate bonds work.
Until now, crypto has lacked this foundation. Rates existed, but they were fragmented, opaque, and not standardized. That meant no way to build serious fixed income markets.
TESR closes this gap by serving as a crypto-native equivalent to benchmark rates like LIBOR or SOFR, introducing transparent benchmarks and standardized contracts that bring institutional-grade interest rate markets to digital assets, unlocking an entirely new category of financial markets in DeFi.
What is TESR?
TESR, or the Treehouse Ethereum Staking Rate, is the first benchmark published under the Decentralized Offered Rates (DOR) framework.
Consensus-driven: TESR aggregates validator data with expert panel inputsTransparent: Updated daily to reflect Ethereum’s staking yield environmentReal Adoption: Now referenced in the first tradable ETH staking rate forwards referencing TESR, piloted by FalconX
TESR provides a reliable benchmark that can be integrated into financial products across DeFi and institutional markets.
Introducing TESR FRAs
TESR FRAs, facilitated through FalconX’s institutional brokerage infrastructure, allow market participants to:
Hedge against ETH staking rate volatilitySpeculate on future ETH staking yieldsStructure exposure to Ethereum’s staking yield curve
With a structure similar to traditional interest rate swaps and forwards, these contracts bring institutional-grade rate management tools to digital assets. Their familiar framework lowers the barrier for funds, trading firms, and long-term ETH holders to participate in Ethereum markets, creating new opportunities for yield strategies and forward-looking risk management.
New to Forward Rate Agreements (FRAs)? Learn more from our explainer blog, The Rate Renaissance II to understand how FRAs work, why they matter, and how they’re becoming the foundation of fixed income in DeFi.
Institutional Participation
The launch has already drawn strong interest from leading institutional investors and hedge funds. A number of firms are either actively trading TESR FRAs or preparing to participate. This early activity demonstrates that benchmark-based derivatives are not only viable, but in demand among some of the most sophisticated players in digital assets.
Participants include:
AlgoquantAugustEdge CapitalMonarqGallet CapitalLeadBlockBitPandaMEV CapitalMirana VenturesMoonvaultRockawayXJPEG TradingWave Digital Assets
Their involvement highlights a bigger story: institutions now see TESR as the legitimate benchmark for staking yields, and FRAs as the gateway to a broader fixed income market in Ethereum. This confidence validates DOR’s role in setting transparent, standardized rates, and signals that the liquidity and infrastructure needed for rate-based products are falling into place.
At the same time, this launch marks the beginning of a deeper, continuously accessible market. It shows that institutions now have the confidence, infrastructure, and tools to participate in Ethereum’s emerging fixed income ecosystem, powered by the Decentralized Offered Rates (DOR) framework.
Why TESR FRAs Matter
The launch of TESR FRAs has been recognized as a major step forward in building fixed income markets for digital assets.
Ivan Lim, Senior Derivatives Trader at FalconX, emphasized how this launch brings risk management tools into crypto:
“FalconX is proud to launch TESR FRAs, which give institutions access to sophisticated tools for managing staking rate exposure. This marks an important step forward in integrating institutional-grade risk management in crypto markets.”
Michael Ashby, CEO of Algoquant and former Head of Point72 Digital Assets, stressed the importance of managing rate exposure:
“The ability to manage ETH staking rate exposure is critical for maturing digital asset markets. Staking rate derivatives like TESR FRAs offer a clear, efficient way to manage rate risk and enhance capital deployment.”
Nicholas Gallet, CEO of Gallet Capital, noted that these instruments are long overdue:
“Staking rate derivatives like TESR FRAs are long overdue, especially with the surge of institutional capital into crypto over the past year. For the first time, long-term crypto holders can hedge against staking yield volatility and express forward-looking views in a format that is similar to traditional finance.”
For Treehouse, the launch reinforces TESR’s role as a benchmark and shows how DOR can anchor a broader fixed income layer in crypto.
Brandon Goh, Co-founder and CEO of Treehouse, underscored the importance of TESR FRAs for DeFi fixed income:
“The introduction of TESR FRAs signals a key milestone in building the fixed income layer for digital assets. With TESR and the infrastructure we’ve built through DOR, we’re enabling institutions and staking providers to hedge, price, and manage rate volatility—essential functions in any mature financial ecosystem.”
Ultimately, TESR FRAs showcase the massive potential of DOR benchmarks like TESR to unlock scalable, institutional-grade products in crypto. As more protocols and institutions build around standardized benchmarks, DOR rates will serve as the foundation for lending platforms, swaps, and structured yield strategies, driving the next phase of growth in decentralized fixed income.
What’s Next
Unlike one-off proof-of-concept trades, TESR FRAs form part of a live, continuously accessible market. FalconX’s execution layer and Treehouse’s benchmark publishing infrastructure enable standardized documentation, trading workflows, and recurring participation, laying the groundwork for deeper liquidity.
Looking ahead, TESR will anchor a broader suite of rate-based innovations in digital assets, including:
Interest rate swapsETH lending productsStructured yield protocols built on the DOR standard
This launch is just the start. Together, FalconX and Treehouse are establishing the foundations of crypto’s fixed income layer—where transparent benchmarks, liquid derivatives, and institutional infrastructure converge to support the next generation of financial products.
About Treehouse 🌳
Treehouse, a digital assets infrastructure firm and the decentralized arm of the parent company Treehouse Labs, is at the forefront of revolutionizing the decentralized fixed income market. Treehouse Protocol introduces innovative fixed income products and primitives across chains through tAssets, liquid staking tokens that empowers its users to participate in the convergence of on-chain interest rates while retaining the flexibility to engage in DeFi activities.
Treehouse Protocol is also pioneering the Decentralized Offered Rates (DOR) consensus mechanism for benchmark rate setting, enabling a range of fixed income products and primitives into digital assets. Treehouse is dedicated to creating safer and more predictable return alternatives for both individual investors and institutions.
Website: https://treehouse.finance
X: https://x.com/TreehouseFi
Discord: https://discord.gg/treehousefi
About FalconX
FalconX is a leading digital asset prime brokerage for the world’s top institutions. We provide comprehensive access to global digital asset liquidity and a full range of trading services. Our 24/7 dedicated team for account, operational and trading needs enables investors to navigate markets around the clock. FalconX Bravo, Inc., a FalconX affiliate, was the first CFTC-registered swap dealer focused on cryptocurrency derivatives.
The company is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management.
FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta.
Website: https://www.falconx.io/
X: https://x.com/FalconXGlobal
Linkedin: https://www.linkedin.com/company/thefalconx/
$TREE #Treehouse #FixedIncome #DOR
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