What is Sense Finance? Sense Finance is an infrastructure for building applications that generate fixed returns on assets. So what is Sense Finance? Let’s find out in this article!
You can read more about Element Finance, a project that works similarly to Sense Finance, here.
What is Sense Finance?
Sense Finance is the infrastructure to build and develop new profit principles for DeFi. Such as fixed income tokens, yield tokens.
Sense Finance stripping yields allows users to decompose yield-bearing assets into principal and yield components. That is, when assets are deposited into the Pool, they will receive Principal Token (PT) and Yield (YT). With PT and YT, users can collect a fixed rate on the underlying token or trade on future profits without the risk of liquidation.
Profits on Sense come from using assets on the Farming platform in Uniswap, Curve, Compound,…
Stripping is the first app built on Sense, where users can access fixed-interest versions of variable-yield tokens or trade future yields on yield-bearing assets now available.
Mechanism of Action
Participating components on Sense Finance:
- Fixed Rate Earners: People deposit assets into the platform and earn fixed interest rates over the term. These are people who value certainty and want to protect themselves from variability in returns who will use Sense to earn a fixed APY on their investments.
- Yield Traders: People earn yield through Sense Finance’s AMM. They can buy assets at discounted prices.
- Liquidity Providers: People provide liquidity to the AMM and they earn trading fees.
- Borrowing on FiatDAO: Users with Sense PT looking to access liquidity and amplify their positions will use FiatDAO to mint FIAT against PT collateral.
- Arbitrageurs: Arbitrageurs seeking to make risk-free profits through market inefficiencies will publish trades implementing PT/YT arbitrage.
Development Roadmap
2022: Launch
- Launch of Sense Protocol on March 24.
- Delivering key infrastructure innovations enabling: Higher Fixed Interest Rates – Capital Efficient YT Swaps, Fast Asset Integration – ERC4626 Adapter Factory, Passive Liquidity – Rotating liquidity warehouse.
- Partnered with some of the fastest growing DeFi protocols, such as: Morpho Labs FiatDAO, Lido.
- Enhanced Portal & launched products, giving users visibility on: Deal Reviews, Web3 Yield Curve Panel, Sense dune Dashboard.
2023: Expand scale and innovate
- Get started: The DeFi community will have what they need to take full advantage of the convenience of on-demand fixed income.
- UI/UX Redesign: Sense needs to be 10x simpler for casual savers who don’t care about protocol mechanics and 10x more informative for professional yield traders.
- Processing scale: To serve large capital allocators, we are investing heavily in R&D to improve price execution for AMM markets.
- Borrowing and Lending: Borrowing and lending of PT, YT, LP stocks leads to higher capital efficiency, liquidity and price discovery in the Sense market.
- Establishment of the Blue Chip Community: Community is a key component of any successful DeFi project, and we have been fortunate to have a supportive and engaged community throughout 2022. This is the year that the community Sense co-developed.
Core Team
Kenton Prescott: Co-Founder | CEO
- He graduated with a Bachelor of Science, Aerospace, Aeronautical and Astronautical Engineering in 2019 from the University of Florida.
- While in school, he joined a NASA student research group. And interned at Lockheed Martin, SpaceX, MakerDAO. Although he was only an intern, he approached many large companies in both traditional and Blockchain fields.
- In early 2019, he became MakerDAO’s official Integrations Engineer. Guide partners to implement technical integration in Maker protocol. Design, build, and improve Python and Javascript bots, drive the Maker protocol, and participate in DeFi liquidation systems.
- After nearly a year of working with MakerDAO, he decided to start a business with the Sense Finance project. And he is Co-Founder, CEO of Sense.
Federico Martín A: Building Smart Contracts
- He graduated in Computer Science from Universidad Nacional de La Plata in 2015.
- In early 2016 he worked as a software engineer for Vreasy, a vacation rental and guest management platform that helps short-term stay property managers control all aspects of their rental business. .
- After that, he moved to work as Lead Blockchain Engineer for qiibee, Inboxlab, Savvy.
- In 2020, he started his career with Lemon. At Lemon he is a Co-Founder. Along with that, he is working for ZenSports with the title Blockchain Advisor until now. In addition, he is an Engineer at Sense Finance.
Investors
August 3, 2018: The successful $5.2M Seed round was led by Dragonfly with participation from Bain Capital Ventures, Nascent, Variant, Robot Ventures and theLAO.
Tokenomics
Updating…
Exchanges
Updating…
Sense Finance’s Information Channel
- Website: https://sense.finance/
- Twitter: https://twitter.com/senseprotocol
- Medium: https://medium.com/sensefinance
- Discord:
Summary
Although Sense Finance launches in 2022, TVL has not yet reached the $1M milestone. It proves that the project is facing many limitations while the market is not good.
So I have clarified what Sense Finance is? Hope this article provides you with a lot of useful information.