Methodology

TEBR (Treehouse Ethereum Borrowing Rate) is a high-frequency, liquidity-weighted index designed to track prevailing borrow rates across major DeFi protocols in real time.

TEBR Formula can be simplified to:

Market Exclusion Criteria

Only borrow markets with greater than $5 million in available liquidity are considered. This threshold ensures the index reflects rates from markets with meaningful depth and minimizes the influence of illiquid or volatile pools.

Weighting Scheme

Rates are weighted based on the proportion of available liquidity in each market relative to the total liquidity across all qualifying markets. This liquidity-weighted approach ensures that more liquid markets exert greater influence on the index.

Update Frequency

TEBR is refreshed every 10 seconds, providing near real-time visibility into lending rate dynamics across the supported protocols and networks.