Credit · Fixed Income · SENSE
Sense Finance is a yield-stripping protocol that decomposes yield-bearing assets into zero-coupon Principal Tokens and Yield Tokens for fixed-rate and yield-trading use cases. Verify on-chain activity before relying on it.
Yield stripping into zero-coupon and yield tokens.
Protocol TVL
$22.1K
Latest data · 15 min delay
Typed risks scored by severity, likelihood and impact, with the incident record behind them.
Protocol sunset in October 2023 after 18 months of operation; users were told to withdraw by 1 December 2023 and the UI was open-sourced.
36
severity-weighted points across 12 typed risks · 2 critical
assessed Oct 2023Market
7· 3 risks
Technological
15· 5 risks
Counterparty
3· 1 risk
Governance
11· 3 risks · 2 critical
Regulatory
No rowsNo Regulatory risk rows in the dataset: a recorded finding (no fetchable regulatory exposure source), not missing data.
Every score is recomputed at render time from the typed risks below; nothing is hand-assigned. Each risk contributes its severity weight (critical 4 · high 3 · medium 2 · low 1) to its category; the headline number is the sum across all categories. Bars scale to this entity's highest category score. Scores are not comparable across tags because a permissionless-market protocol concentrates technological risk while an institutional-credit protocol concentrates counterparty and regulatory risk, and a single league table would misrepresent both.
Market 3 × → 7
Technological 5 × → 15
Counterparty 1 × → 3
Governance 3 × → 11
Sense is a discontinued protocol, and that is the dominant fact about its risk profile. It never suffered a documented exploit, it was audited eight times by credible firms including Spearbit and Sherlock, and it was noncustodial throughout, so the technical foundation was sound. What killed it was demand: the team concluded in October 2023 that DeFi simply did not want fixed rates consistently enough to sustain the product, wound it down, and open sourced the interface. Anyone still holding a Sense position is now dealing with unmaintained contracts, a hosted frontend that was switched off on 1 December 2023, and a 2 of 3 multisig that retains real powers including pausing the Divider and backfilling the Scale value that determines how much Target each and holder receives. Layered on top are the dependencies Sense always had, on Balancer V2 for the Space AMM and on Compound or Aave for converting Target back to Underlying. The residual risk is not that Sense will be hacked, it is that no one is left to respond if something goes wrong.
Market3
Technological5
Counterparty1
Governance3
1 documented incident · 26 Oct 2023 · how the protocol behaved under stress, with sources.
26 Oct 2023
Sense Finance announced it would sunset the Sense Protocol after 18 months of operation and open source the UI, stating that the DeFi market landscape lacked the consistent demand for fixed rates essential for robust market development. The core team ceased contributions.
DetailsSense Finance announced it would sunset the Sense Protocol after 18 months of operation and open source the UI, stating that the DeFi market landscape lacked the consistent demand for fixed rates essential for robust market development. The core team ceased contributions.
Outcome: Users were instructed to withdraw via app.sense.finance by 1 December 2023, after which Sense relinquished hosting of the interface. MORPHO rewards were claimable up to Age 7, ending 4 October 2023.
SourceEvent-type chips are categorised by event type against the risk taxonomy (a documented presentation mapping, not a dataset assessment). Amounts are the dataset's published figures; missing values were never published.
