$TREE Huge positive news, yet surprisingly little discussion in the Chinese market. First, the facts: On September 25, Treehouse, in collaboration with FalconX, launched the first Ethereum staking rate forward contract (TESR FRA). Now, let's break it down step by step 👇 1/ Who is FalconX? In a few sentences, here’s a summary of FalconX: First, it is an institutional crypto trading platform valued at $8 billion, with a total funding of $430 million. Second, it is backed by top institutions such as the Singapore Sovereign Wealth Fund, B Capital, and Tiger Global. Additionally, FalconX is a CFTC-registered swap dealer, possessing compliance qualifications at the level of traditional finance, and they have the capability to bring crypto derivatives to the mainstream institutional market. 2/ Why is this so important? After the Ethereum merge, staking yields have become the network's "native interest rate." However, the problem is that this rate will fluctuate. For institutions managing billions of dollars, this uncertainty represents risk. Traditional finance has benchmark rates like LIBOR and SOFR, around which a massive derivatives market has been built. The crypto world has always lacked this infrastructure—until now. TESR provides a version of the answer: Institutions can lock in future staking yields Hedge against the risk of declining staking yields Or speculate on the rise of staking yields How big is the potential for this product? Referring to traditional finance, interest rate derivatives are one of the largest financial markets. Now the crypto market finally has its own "interest rate curve," around which TESR can build: Interest rate swaps Structured yield products More complex fixed income instruments 3/ How is the market reacting? A series of leading institutional investors and hedge funds, including Algoquant, August, Edge Capital, Monarq, Gallet Capital, LeadBlock, BitPanda, MEV Capital, Mirana, Moonvault, RockawayX, Wave Digital Assets, and JPEG Trading, are participating or have expressed interest in trading the newly launched forward rate agreement market. These are not small players. Edge Capital manages billions in assets, and Monarq is a top crypto quant fund. Their participation indicates that this product indeed addresses a real demand. More importantly, this is not a one-time proof of concept, but a continuously operating real-time market. Next, we are likely to see more derivatives innovations based on TESR.