Set is evolving and we invite you to be part of the journey.
Set Protocol was founded on the fundamental belief that access to great asset management should be available to everyone. We started by detailing ‘Strategy Enabled Tokens’ in early 2019 and then launched them on TokenSets in April of 2019. Then, we pioneered automated trading strategies on Ethereum with Robo Sets and continued innovating on this with the launch of Social Trading in early 2020.
Today, the Set platform is home to 15 Robo Set strategies and over 30 professional traders who are offering over 50 different trading strategies. The oldest Trend Trading Robo Set, ETH 20 MA Crossover, has returned 76% more ETH for users since July of last year, and the largest Social Trading Set, BTC Network Demand, has outperformed BTC by 56% since February of this year.
The Set Protocol vault has grown from $500,000 locked to $24 million in just over a year and the cumulative rebalance volume sits at over $100 million. Set rebalances are frequently the largest on-chain Ethereum trades with up to $7.5 million that settle at a slippage of 0.25–0.5%.
Today, the DeFi ecosystem on Ethereum is evolving at a rapid pace and it’s become increasingly difficult for users to capture the best opportunities available to them. We find through our experience with building Set that there are many users hungry to gain automated exposure to DeFi — whether it be via buying a Robo or Social Set, trading a token, or farming some yield.
To that end, we’re excited to detail a brand new iteration of Set Protocol that will be built upon all of our learning’s from the last couple of years. We believe that it will give users, traders, market makers and developers the tools they need to take advantage of all of the exciting opportunities available to them in DeFi.
New Features for Users
Traditionally, Set Protocol has only supported a handful of assets (ETH, WBTC, USDC, DAI and LINK). Soon, the protocol will support a range of different assets including all of your favorite DeFi tokens, additional stablecoins, liquidity provider (LP) tokens, synthetics and eventually the entire universe of crypto assets. As a result tracking a rebalancing index of many tokens is as simple as acquiring a single Set token.
Yield Farming Support
Recently, yield farming has been the hot trend in the DeFi space but the UX, complexity, time, and cost has turned away many potential participants. Portfolios in Set Protocol v2 will be able to support a wide range of yield opportunities across a wide range of protocols, in which users only need to pay Ethereum gas fees when entering or exiting a strategy, leading to dramatically lower Ethereum gas costs.
Over time, we’ll be deploying plenty of exciting yield farming strategies to the TokenSets platform — including strategies designed by the Set Labs team and strategies that the community creates or suggests.
Gas Cost Savings
Fees on Ethereum have been very high for a few months now which has had a large impact on Set in particular as buying or selling a Set tends to be a costly transaction. With the new iteration of Set Protocol, gas costs will be reduced significantly not only for buying/selling a Set, but also for other protocol functions such as rebalances. Note that this will only apply to Sets deployed in the future and is unfortunately not retroactive.
New Features for Set Managers and Developers
Set managers will now have more flexibility with the new Set Portfolios feature. A Set Portfolio is made up of one or more strategies that the manager can trade with. For example, a manager can have an index strategy that consists of 12 assets and trade between those assets in any allocation with high liquidity and low slippage.
Flexible Trade Execution
Set Protocol v2 will add support for a range of trading types that managers can take full advantage of. This includes the ability to trade on any decentralized exchange, running auctions for large trades, synthetics trading with no slippage, and flexibility for margin and perpetual futures trading. This version will enable full flexibility for portfolio owners to choose their preferred method of trade execution.
Enhanced Protocol Integrations
Set Protocol v2 will allow for a number of different integrations with popular DeFi protocols such as Balancer, Curve, Synthetix, AAVE, and Compound. Unlike the current iteration of the protocol, the new version of the protocol will also be able to receive airdrops and liquidity mining rewards from these protocols (BAL, CRV, SNX and COMP). This allows Sets to participate in yield seeking strategies across the entire DeFi spectrum to capitalize on all opportunities.
Timeline for Launch
The Set team is currently in deep development building out all of the features mentioned above. These features will start rolling out incrementally over the next few months and we can’t wait for you to get your hands on them. We’ll be putting out detailed information about how each new feature will work over time as well.
If you’re a developer that is interested in integrating with Set Protocol, please feel free to reach out to us at [email protected]
Interested in joining our V2 as a Set Manager? Fill out this form here.
Have strategies you would like to see as a part of the platform? Tweet at us or let us know here.
Learn more about Set and join our community