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TokenSets (Founded in 2017) is a protocol that bundles crypto-assets into tokenized baskets that are programmed to automatically restructure based on any Management or trading logic.[8]
TokenSets provides cryptocurrency basket and portfolio management services. It provides various automated asset management strategies. It offers a crypto token basket for the ERC20 standard for investment.[6]
Set Protocols is a non-custodial Protocol built on Ethereum that allows for the creation, management, and trading of Sets, ERC-20 tokens that represent a portfolio or basket of underlying assets.
Each Set operates and periodically rebalances its portfolio according to a strategy coded into its smart contract.
Set Protocol was announced in November 2017, and its first user-facing application, TokenSets, launched in April 2019.
Users can make use of professional tools for asset managers that help you create, manage, and grow your Set.
Users can create their own set directly using developer documentation and SDKs. Customize it with any ERC20 asset and strategy.
Users can use Set’s portfolio management tools to rebalance and tap into yield-generating opportunities.
Users can grow their own managed assets through Index Coop’s community and liquidity incentives.
TokenSets was born from the idea that structured products in crypto were going to be huge.
In finance, ETFs ten years ago had $700 billion cash invested. Today it’s $5.1 trillion, increasing by more than 7x. Combine this with crypto where anyone in the world with an internet connection can participate in the global financial system, it can become a powerful tool for wealth creation.
With this vision, the team raised funding from Craft Ventures, Vy Capital, DFJ, Social Capital, Kindred Ventures, Haystack Ventures, and move the needle forward on building smart financial products made for the cryptocurrency market
At the end of the day, we wanted to create a product that solved our own problem. We wanted to make a product that was smart enough to enter and exit out of positions at the right times based on market conditions, and do it without the emotional risk or pouring hours of time staring at charts for buy and sell signals. We obviously weren’t the only ones facing this issue, and when we asked our crypto friends, they overwhelmingly agreed that they’ve felt these pains
TokenSets was built to help people easily buy an asset that does all of the smart management for the user holding the Set. The magic for each Set you buy happens in the Set Protocol layer. The protocol monitors crypto market conditions and manages the assets based on if there’s a buy or sell signal depending on which strategy that's chosen. It helps remove the emotional risk from panic selling when prices are too low or fomo buying when prices are too high.
TokenSets brings automated asset management to crypto. It offers two types of sets: social trading sets and robo sets. Each Set has its own criteria for when to rebalance the weight of its portfolio of assets. When a Set's rebalancing criteria are met, a grace period starts that lets holders opt-out prior to rebalancing. After the grace period, transfer of the TokenSets is paused until the rebalance is completed via a modified dutch auction process.[7]
The Robo Sets option is a range of predefined Sets for traders to use, to fit into their desired trading strategies which come built into the set. They are hard-coded strategies including trend trading, range-bound, and buy and hold sets.
The Social Trading Sets are strategies executed by human traders, they work in the same way as the Robo Trading Sets, the difference being is that they are performed by people. This type of set gives control of selecting the best performing traders to put your trust into. This option will become more popular as more tokens are added to TokenSets. Adding more tokens will offer more variety to traders and will differentiate the Social Sets from the Robo Sets.
Rebalancing is the process of realigning the weighting of a portfolio of assets. Sets periodically adjust their allocations when component token prices change enough, and enough time has passed through an on-chain rebalancing mechanism. Set rebalances do not use Kyber as a liquidity source, and instead, use open market participants to supply liquidity. This is to ensure that users don’t incur unnecessary and unpredictable amounts of slippage.
The is a cooperative focused on building the greatest products and financial building blocks. It is most commonly known for creating, maintaining, and growing the (DPI), powered by Set Protocol.
is an open-sourced UI that enables interactions with the Set Protocol system via Web3. With it, anyone can get started creating Set strategies and interacting with their Sets. There are also consumer flows for your strategy customers to issue your Strategy.
Set Protocol V2 (“Set V2”) is an Ethereum-based protocol that enables the following:
Set V2 employs a modular architecture consisting of a collection of modular smart contracts where additional components (e.g. modules, factories) can be seamlessly integrated or removed. This architecture is extensible, allowing new features and integrations to be easily added.[2]
Set’s system consists of:
TokenSets platform has a very valuable use case in that is seen in the real world of finances in the form of asset-backed baskets and the amount of control the platform offers to traders makes it a nice tool to add to the DeFi tool-bag. The TokenSets team has taken that use case and successfully brought it to the blockchain.[5]
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Edited On
September 29, 2022
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Edited By
Edited On
September 29, 2022