what's Sense Protocol?

Sense Protocol is a decentralized fixed income infrastructure on Ethereum for DeFi. It decomposes variable yield-bearing assets (Targets) into two fully-backed, fixed-term tokens: Principal Tokens (PT) for the principal amount and Yield Tokens (YT) for future yields. These trade on Sense Space, a specialized AMM optimized for high yields and low slippage. Users can earn fixed rates by holding PTs, speculate on yield directions via YT longs/shorts, or provide liquidity to pools earning variable yields. The design is permissionless—anyone can bootstrap new markets—and avoids liquidations or insolvency risks inherent in traditional lending protocols, promoting capital efficiency and risk management.