The decentralized finance (DeFi) protocol Treehouse has released the results of its internal review regarding the major security incident that recently shook the cryptocurrency market and the controversy surrounding non-performing loans on lending platforms. The project team claims that its core product, the tETH strategy, is safe from external shocks, while also explaining that it has temporarily suspended some services in response to increased market volatility. This announcement aims to calm investor anxiety and reaffirm the protocol's soundness. Specifically, Treehouse stated that its system is not directly exposed to the problematic rsETH asset and that user-deposited funds remain completely secure. All collateral assets can be verified for their existence through publicly available, real-time on-chain data. It particularly emphasized that this strategy uses a different standard than the bridging technology that recently caused issues, highlighting that there is no technical connection whatsoever. This suggests it is isolated from the direct spillover effects of external events. However, it has not been immune to the impact of soaring borrowing rates following a market-wide rigidity in the DeFi lending sector after the security incident. The project team anticipates that this could temporarily push the tETH strategy's daily estimated yield into negative territory. Considering these market conditions, Treehouse has proactively decided to suspend both the regular and fast withdrawal services. This is interpreted as a preemptive measure to prevent potential liquidity stress that could arise under abnormal market conditions. Regarding the non-performing loan issues raised on other lending platforms, it analyzed that the related risks are extremely limited due to its own strategy structure. Treehouse's tETH strategy operates by using specific tokens as collateral to borrow other tokens. Therefore, it maintains that it is structurally unrelated to the current non-performing loan risks on the fund supply side that are causing problems. The team added that it is currently adjusting positions in response to the volatile market environment while monitoring the secondary ripple effects in the lending market. Treehouse plans to resume the suspended redemption services once the market returns to a normal track. The project team emphasized that all assets remain sufficiently collateralized and that transparency will continue through real-time data disclosure. The specific asset status and proof of reserves can be checked by anyone via the official website. This response serves as a case study in how the DeFi ecosystem responds to external shocks and strives to maintain trust.