Sense Finance
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
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Latest data · 15 min delay
Risks identified
- Systemic
The protocol is deprecated: the Sense Core team ceased all contributions in October 2023 and stopped hosting the front-end on December 1, 2023. Remaining PTs/YTs and Space LP positions rely on immutable, unmaintained contracts with no team support, no active UI, and effectively no liquidity — any residual value must be interacted with directly on-chain.
- Smart Contract
Sense is a complex yield-stripping system (Divider, adapters, Space AMM built on Balancer V2, and the Auto-Roller vault). Despite multiple audits, unmaintained immutable contracts cannot be patched, so any latent bug in the Divider, adapters, or Space math is permanent and unmitigable now that the team has stepped away.
- Collateral
Each fixed-income market depended on the specific yield-bearing Target it wrapped (e.g. Lido stETH, Compound cUSDC). Adapters were permissionless, so a poorly-chosen or compromised Target could impair the PT/YT of that series; PT redemption value is only as sound as the underlying Target and its adapter's scale accounting.
- Oracle
Space integrated a TWAP oracle and adapters read a Target's 'scale' to value redemptions and yield accrual. Manipulation or mispricing of the Target scale or the Space TWAP could distort PT/YT valuations and enable mispriced trades or unfair redemptions.
- Reserve / Depeg
Because Targets were assets like stETH, a depeg of the underlying yield-bearing asset (e.g. stETH trading below ETH) would directly reduce the redemption value of the corresponding Principal Tokens, transmitting the underlying's peg risk to Sense fixed-income holders.