Overview
This proposal seeks DAO approval for two related initiatives that support Treehouse’s expansion to HyperEVM:
- Enable bridging of TREE to HyperEVM via Chainlink CCIP, alongside existing supported networks (Ethereum, Arbitrum, Base, Avalanche, and BNB)
- Allocate 50,000 TREE from the Community Rewards allocation to fund a 2-month TREE emissions program for tHYPE, distributed via Merkl
Together, these initiatives extend TREE’s cross-chain reach to HyperEVM and support early adoption of tHYPE through targeted incentives.
Background
1. TREE Cross-Chain Bridging
TREE is currently bridgeable across Ethereum, Arbitrum, Base, Avalanche, and BNB via Chainlink’s Cross-Chain Interoperability Protocol (CCIP), as established under TIP 6’s mesh bridging architecture.
HyperEVM is not yet a supported destination for TREE bridging.
2. tHYPE
tHYPE is Treehouse’s latest tAsset on HyperEVM, built on kHYPE via Kinetiq.
Like other tAssets, tHYPE is designed to combine native staking yield with Market Efficiency Yield (MEY), generated through rate arbitrage across lending markets.
At the time of this proposal, tHYPE holds approximately $300,000 in TVL, with a total native APR of approximately 2.10%.
3. Merkl
Merkl is an onchain rewards distribution infrastructure used to distribute yield, dividends, and rewards to eligible users.
Reward data is organized through a Merkle tree and published onchain, allowing eligible participants to connect their wallets to Merkl and claim rewards.
Motivation
1. TREE Bridging to HyperEVM
As Treehouse expands its tAsset ecosystem to HyperEVM, extending TREE’s mesh bridging architecture to the network ensures consistency across all chains where Treehouse operates.
Enabling TREE bridging to HyperEVM via CCIP allows:
- HyperEVM users to access TREE for governance participation and ecosystem utility
- TREE to operate consistently across Treehouse-supported networks
- Treehouse to maintain alignment with the CCIP-based mesh bridging architecture established under TIP 6
2. tHYPE Incentive Program
tHYPE is a newly launched tAsset in Treehouse, and early liquidity depth is critical to its adoption curve.
A targeted TREE emissions program is intended to:
- Support early TVL growth for tHYPE
- Improve the competitiveness of tHYPE during its initial growth phase
- Increase visibility and adoption of Treehouse’s HyperEVM deployment
- Encourage participation in the tHYPE ecosystem
Based on current TVL conditions, the proposed emissions is expected to boost tHYPE’s total APR by ~4.5%, bringing projected total APR to ~6.5%.
Actual APR may vary depending on TVL, token prices, and participation levels.
Specification
1. TREE Bridging
If approved, this proposal will:
- Enable bridging of TREE to HyperEVM via Chainlink CCIP
- Maintain parity in TREE’s total token supply across networks through lock-and-burn mechanisms
- Apply the same security and audit standards used for existing TREE bridging routes
2. tHYPE Incentives
If approved, this proposal will:
- Allocate 50,000 TREE from the Community Rewards allocation to fund tHYPE incentives
- Transfer the allocated TREE from the Community Rewards multisig to 0xaEe069A700baa4dC01238B5Cc67eD6C50066Bdb8
- Distribute the 50,000 TREE via Merkl as TREE emissions to eligible tHYPE holders over a 2-month period
The DAO retains authority to revise allocation parameters, extend or conclude the program through future governance proposals.
Implementation Plan
If approved, the DAO assigns Treehouse Protocol to:
- Finalize CCIP integration parameters for the TREE to HyperEVM bridging route
- Submit relevant bridging smart contracts for security audit
- Deploy bridge endpoints on HyperEVM and enable TREE transfers
- Transfer 50,000 TREE from the Community Rewards allocation to the designated incentives wallet for distribution
- Configure the tHYPE incentive campaign on Merkl, including reward token, amount, duration, and eligibility criteria
- Monitor incentive program performance and tHYPE TVL growth throughout the 2-month program
Next Steps
- Gather community feedback on the Governance Forum
- Escalate the proposal to Snapshot for formal voting
- Implement TREE bridging to HyperEVM and launch the tHYPE incentive program upon approval