Introduction The goal of this article is to take a reader from not knowing what “yield curve” actually means, to being excited about the Web3 Yield Curve created by the Sense Protocol. First we’ll talk about yield curves in traditional economies, what they tell us about market expectations, and their impact…

An update on what Sense achieved in Q2 As we’ve discussed in our Why Sense article, we believe that the logical solution for self sustaining, permissionless, decentralized, resilient fixed income infrastructure is yield stripping. Yield stripping is the only way to provide safety (full collateralization of fixed income), abstractability (can…

Liquidity providers (LPs) want to allocate capital to a position that is passive and offers attractive upside. Historically, being an LP for on-chain fixed income based on yield stripping has offered neither of those things. It has always (1) offered an unattractive return profile versus just keeping the provided assets…

The Fed is Tightening, but the Ethereum Network is Tightening More The most under-discussed impact of the Merge (Ethereum’s switch from Proof of Work to Proof of Stake) is that it creates an equivalent of a “Risk Free Rate” (RFR) for Ethereum. This is probably the most meaningful impact in…

demystifying a new pool for DeFi liquidity providers [UPDATED EDIT: For improved, more complete analytics, visit: https://docs.sense.finance/docs/space-pool-performance/] The Big Picture Before going into detail, here is a high-level summary of how being a Space Pool LP (e.g. providing sP-wstETH/wstETH liquidity) compares to some relevant benchmarks in multiple market action scenarios. It’s important to…

A Bright Future for Humanity This is part 2 of a three article series. The first one discusses and justifies Toby Ord’s estimate that the human race has about a 1 in 6 chance of destroying itself in the next 100 years (a large portion of that article is functionally…

I’ve seen a couple folks tweet stuff along the lines of “ETH is the internet bond,” which it’s not — but it could be. Below I describe: (1) What yield curves are and why they matter, (2) How we could make yield curves for crypto economies, and (3) A crude…

Heuristics are good for decision-making, because we are bad at making decisions. In fact, heuristics are better for decision-making than we think they are, because we are biased to think that we are better at decision-making than we actually are. This, ultimately, is the value of moral codes. Having a…

This is going to be a series of three articles. The first (this one) discusses and justifies Toby Ord’s estimate that the human race has about a 1 in 6 chance of destroying itself in the next 100 years (a large portion of this article is functionally a summary of…