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Connor and co-host James Lovely, an expert in structured financial products, welcome Brandon Goh, CEO and Co-founder of Treehouse Finance, to explore the intersection of traditional finance (TradFi) and decentralized finance (DeFi). Goh shares his journey from Morgan Stanley to crypto, discussing how innovations like Uniswap reshaped his perspective. The conversation covers risk and return in borrowing rates, Ethereum’s proof-of-stake system as a crypto equivalent to the risk-free rate, and the differences between Ethereum and Bitcoin. Goh introduces Treehouse’s T-Asset product, which enhances liquid staking yields through arbitrage strategies, and highlights the importance of decentralized benchmark rates like the Decentralized Offered Rate (D.O.R). They also examine risks such as rehypothecation and the need for reliable data in DeFi, concluding with a discussion on institutional adoption and the infrastructure required for its growth.
Timestamps:
00:00 - Introduction
03:09 - Brandon's Transition from TradFi to Crypto
05:12 - Core Concepts of Borrowing Rates in TradFi
07:59 - On-Chain Rates and Their Implications
09:05 - Comparing Bitcoin and Ethereum as Risk-Free Rates
12:22 - Staking Yield as a Risk-Free Rate Analogy
14:08 - Liquid Staking Explained
21:34 - Treehouse's T-Asset Product Overview
23:46 - Decentralized Finance and Risk Considerations
29:30 - Institutional Involvement in DeFi
31:12 - Expanding to Other Chains and Market Strategy
32:34 - Introduction to Decentralized Offered Rates (DOR)
41:34 - Building a Decentralized Benchmark Rate
48:09 - Incentives and Accuracy in the DOR Framework
Disclaimer: The hosts and the firms they represent may hold stakes in the companies mentioned in this podcast. None of this is financial advice.
