Checks & Balances

In the Treehouse ecosystem, the integrity of the system is maintained through a network of checks and balances among its five categories of participants, each relying on the others to safeguard their best financial interests.

• Operator: Operators initiate and administer the DOR system, incentivized by Referencers who contribute revenue through querying fees. They continuously improve and maintain the DOR system and recruit top-quality Panelists and Delegators. Despite their role as administrators, Operators depend on the subject matter expertise of Panelists to ensure the accuracy and decentralization of the consensus rate.

• Panelists: Panelists rely on Operators and Referencers to provide financial incentives for their work on rate predictions. They earn from a reward pool set aside by the Operator and receive a portion of the query fees paid by Referencers. Delegators also play a crucial role in ensuring the quality of Panelists' work. Panelists' track records for rate predictions are publicly available, serving as a key metric for attracting delegations to boost the yield of Panelists' rewards during each observation period.

• Delegators: Delegators rely on their share of the Operator’s reward pool and querying fees from Referencers for financial incentives. Unlike Panelists, they do not possess the subject matter expertise required for rate consensus and instead rely on the delegated Panelists to participate in the process and earn rewards. At the same time, the tAssets delegated by Delegators extend cryptoeconomic security to DOR.

• Referencers: Referencers depend on Panelists to provide accurate rate predictions, ensuring reliable data for research and pricing of financial products. They also rely on Operators to maintain the DOR, who provide ongoing incentives to Panelists and Delegators. Referencers also depend on demand from End Users to earn fee revenues on each transaction.

• End Users: End Users of DOR rely on Referencers to offer financial products for trading and speculation. They depend on Panelists to provide accurate predictions, minimizing losses resulting from the basis risk between DOR rates and realized rates. Additionally, End Users rely on Operators to maintain the DOR system, ensuring a seamless trading experience, and pay a portion of their trading fee to keep this system running smoothly.