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Treehouse@TreehouseFi Ā· Nov 12, 2025

šŸŒ³ tETH Turns One: A Review In one year, $tETH has grown to 81K+ ETH ($300M) in TVL, 47K+ users, and 2 chains,ā€¦

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Summary

tETH celebrates its first year with $300M in TVL and 47K+ users, delivering 3.43% annual returns with a Sharpe ratio of 12.39ā€”outperforming similar liquid restaking tokens through a staked ETH carry trade strategy optimized across multiple DeFi platforms. The protocol proved resilient during market stress, maintained its peg, and attracted over $210M in collateral usage on lending platforms.

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  1. #1

    šŸŒ³ tETH Turns One: A Review In one year, $tETH has grown to 81K+ ETH ($300M) in TVL, 47K+ users, and 2 chains, delivering on its promise of steady, low-volatility yield. But the real story isnā€™t just returns. Itā€™s how the strategy held strong through DeFiā€™s ā€œhard mode.ā€ šŸ§µšŸ‘‡

  2. #2

    1ļøāƒ£ The Core Strategy $tETH runs on two simple engines: ā€¢ Staked ETH Carry Trade: Capturing Market Efficiency Yield (MEY) between staking and on-chain borrow rates. ā€¢ Multi-Venue Optimization: Shifting capital across Aave, Spark & more to maximize returns and minimize risk.

  3. #3

    2ļøāƒ£ Quiet Outperformance Consistency pays off. Over the past year, $tETH delivered a 3.43% annual return, outperforming: ā€¢ LRT Index: 3.18% ā€¢ stETH (base): 2.95% We delivered a higher yield. But how we earned it is what matters.

  4. #4

    3ļøāƒ£ Superior Risk-Adjusted Returns Higher returns mean little without control. $tETH posted a Net Sharpe of 12.39, versus 1.91 for the LRT Indexā€”delivering 2x excess return with just 1/3 the volatility. Stable. Predictable. Reliable.

  5. #5

    4ļøāƒ£ Adopted by the Market Confidence isnā€™t just in numbers. Over 50% ($210M+) of $tETH supply is now used as collateral across lending platforms, with majority on @aave for looping strategies. It's a signal that the market recognizes $tETH as a stable collateral.

  6. #6

    5ļøāƒ£ Resilience Under Stress During the October 2025 flash crash, $tETH strategies held firm. While ETH dropped 20% and stETH/ETHā€™s market price depegged to 0.965, our positions remained healthyā€”no liquidations, no losses. tETH stayed positive through the storm. āš”

  7. #7

    6ļøāƒ£ The Road Ahead As we enter Year 2, our focus remains clear: ā€¢ Maintain operational robustness ā€¢ Transparent performance tracking ā€¢ Expand market coverage to optimize net carry for all holders Track tETH on Dune šŸ‘‡ dune.com/treehouseprotoā€¦

  8. #8

    7ļøāƒ£ $tETH proved its stability. Now, join us as we scale the fixed income layer of DeFi. šŸŒ± Stake tETH vault here šŸ‘‡ app.treehouse.finance/vault/teth Read the full comprehensive review on $tETH in our blog šŸ‘‡ treehouse.finance/blog/teth-turnā€¦

  9. #9

    šŸŒ³ Learn more about the Treehouse Protocol: Website: treehouse.finance dApp: app.treehouse.finance Discord: discord.gg/treehousefi Docs: docs.treehouse.finance/protocol Guide: docs.treehouse.finance/protocol/teth/ā€¦ Blogs: treehouse.finance/blog Book: treehouse.finance/One_Rate_To_Ruā€¦