The Sense Protocol is a decentralized fixed-income platform on Ethereum that allows users to trade fixed-rate Principal Tokens and Yield Tokens, enabling capital-efficient bets on future interest rates. By providing predictable returns and protection against interest rate volatility, it enhances accessibility and transparency in the fixed-income market.
Funding
$5.2M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
DFounders
Product
Problem
The fixed-income market lacks accessibility and transparency, particularly within decentralized finance (DeFi), making it difficult for users to manage interest rate risk and earn predictable returns. Existing solutions often involve complex mechanisms and are not capital-efficient for those seeking to speculate on future interest rate movements.
Solution
Sense Protocol is a decentralized platform built on Ethereum that enables users to trade Principal Tokens (PTs) and Yield Tokens (YTs) to gain exposure to fixed-rate markets and speculate on interest rate fluctuations. By tokenizing future yield-bearing assets, Sense allows users to lock in fixed rates, hedge against interest rate volatility, and take leveraged positions on yield movements. The platform utilizes a custom Automated Market Maker (AMM) called Sense Space, designed to provide capital-efficient trading for these unique fixed-income assets.
Target Audience
The primary target audience includes DeFi users seeking fixed-income investment opportunities, traders looking to speculate on interest rate movements, and liquidity providers interested in earning yield on Sense Space AMM.
Features
- Tokenization of variable yield-bearing assets into Principal Tokens (PTs) and Yield Tokens (YTs)
- Custom AMM (Sense Space) optimized for trading PTs and YTs with high capital efficiency
- Ability to earn a fixed rate by holding PTs until maturity
- Opportunity to speculate on future yield movements by trading YTs
- Permissionless design allowing anyone to create new future yield markets
- Audited by multiple independent smart contract auditors (Peckshield, ABDK, Spearbit, Fixed Point Solutions, Sherlock)