How would you use a DeFi asset management protocol? Set Protocol & TokenSets

Alright, try this.

You have a decentralised, trustless asset management protocol at your disposal of which you can create a tokenised portfolio of assets within and manage via smart contracts deployed onto Ethereum & Polygon today - what do you do?

There is no right answer to this, only an open call for people to use their imagination on what would be a fitting or novel use case that would benefit from the flexible asset management protocol above.

When I came across Set in January 2020, during the protocols V1 contracts, Social Trading & Robo Sets were on the agenda. The ability for investors to copy trade a Set manager or algorithmic strategy executing trades on portfolio assets via a tokenised fund was awe-inspiring and very apparent in its ability to disrupt the industry.

Fast forward a year and Set is now running its V2 protocol contracts and is a multi-chain, 100% collateralized DeFi asset management protocol that allows users to invest into monetizable Set tokens that represent any Managers strategy that is being executed onto the portfolio assets, whether manually (trader or portfolio manager) or autonomously (programmatically). One key property about a Set token is that they also represent 100% of the equivalent underlying owned assets and can in fact be redeemed at any time from the smart contract by the investor by burning the Set Token.

Now I’m part of the Set team and also run two of my own on-chain portfolios for a side project of my mine, Crypto Kai, where I journal my DeFi investment journey on YouTube using TokenSets, educate on my own investing style and tools whilst opening the doors to others who want to join in on the portfolios with me in a trustless, transparent way. That was where my imagination took me when faced with the initial question, but how are other people using Set Protocol today?

Let’s dive in and see if we can inspire you to try the platform as an aspiring manager or savvy investor yourself…

Structured Products

Institutions or entities have created structured portfolio products for customers with a refined methodology behind them that fills a market need or niche. The largest crypto indices today are built on top of the Set Protocol infrastructure.

DeFi Pulse Index ($DPI) — DeFi Pulse

The DeFi Pulse Index is a capitalization-weighted index that tracks the performance of decentralized financial assets across the market.

ETH 2x Flexible Leverage Index ($ETH2X-FLI) — DeFi Pulse

The Flexible Leverage Index lets you leverage a collateralized debt position in a safe and efficient way, by abstracting its management into a simple index.

FAANG Index ($FAANG) — Terra

The FAANG Index is a digital asset index designed to track the performance of 5 large-cap US technology companies. The intent is to provide DeFi users with on-chain exposure to a basket of US large-cap technology equities

Metaverse Index ($MVI) — Index Coop

The Metaverse Index is designed to capture the trend of entertainment, sports and business shifting to a virtual environment and often represented by NFTs.

This is only scratching the surface of products when considering those currently being proposed in DAO governance forums such as the Index Coop.

Social Trading

Anyone can become a social trader using our V2 Portfolio Sets created on TokenSets, which gives the Set manager the ability to replicate their trading strategy on-chain using a user-friendly and premium integrated platform that creates a frictionless experience for both Manager and Investor alike and allows monetisation of their customers via streaming fees.

TokenSets Manager UI (Left) & Social Trading Sets Polygon (Right)

So who is doing social trading? Well with 395 Sets currently created on Ethereum and over 80 created on Polygon, launched last week, there are many Sets small and large creating social portfolios to share with their friends family and community. I would put my own humble Crypto Kai portfolios firmly in this category and would love for others to create their own!

$CKI & $CKB Crypto Kai Indices

If you are not sure where to start, dive into this page of the documentation and you’ll be up and running in minutes with your own personalised, on-chain portfolio ✅

Got any questions? Jump into our community Discord.

Treasury Management

Ethereum ecosystem projects are trusting Set Protocol today to manage project treasuries in a trustless, decentralised manner and making use of multi-sig Gnosis safes to interact with TokenSets.

Yam DAO House

yamHOUSE is an actively managed portfolio that is governed by the Yam.Finance DAO. The investment objective of yamHOUSE is to achieve long term capital appreciation and minimize risk in order to support the growth and development of the Yam Ecosystem. This allows a more dynamic allocation of assets with better risk handling and analysis without loss of decentralization.

Sushi DAO House

sushiHOUSE is an actively managed portfolio, like yamHOUSE, that is governed by the Sushi DAO. The investment objective of sushiHOUSE is to preserve capital and minimize risk during a market downturn in order to support the long term growth and development of the Sushi Ecosystem.

sushiHOUSE is the one of Yam.Finance’s “DAO House” treasury products are designed to serve as a DAO cornerstone for the achievement of future growth and ongoing success, all built using the trusted Set Protocol asset management layer.

Inspired? Come Build!

That’s a quick-fire round of products all being built on Set Protocol directly or via TokenSets and are contributing to the $137M total value locked currently in protocol smart contracts today. I’ve always been a big advocate for the team and vision behind Set in what it strives to achieve and want to see more users giving it a go, and hopefully, this rundown of exciting products available today gives you some ideas!

TokenSets Documentation | Set Discord

https://defipulse.com/set-protocol

Crypto Kai 🔗 — Website | YouTube | Twitter | Discord

Set Protocol 🔗 — Documentation | TokenSets| Discord | Twitter

Growth @ SetProtocol