Coming Soon: Announcing Upgrades to RoboSets

Upgrades are coming to RoboSets on TokenSets — Here’s what you need to know

Anthony Sassano

Published in

Set Labs

3 min readApr 28, 2020

Key Points:

We will be launching upgraded RoboSets in the next few weeks with a new and improved rebalance mechanism: Time-Weighted Average Price
This new mechanism reduces slippage and impact on market price during large rebalances which ultimately benefits Set holders
This enables less liquid ERC20 assets to be put into Sets (e.g. WBTC) while keeping slippage low during trades
No action is needed right now — We will continue to support all existing RoboSets and we have no plans to discontinue support

Over the last couple of weeks, our team has been hard at work designing and building a new and improved rebalancing mechanism: Time-Weighted Average Price or TWAP. TWAP breaks trades down into smaller chunks over time and is typically used to execute large orders with lower slippage and without excessive impact on the market price.

We have seen amazing growth the last few months with several of our Trend Trading RoboSets (e.g. ETHRSIAPY) reaching $3M in market cap. With this new mechanism, instead of the ETHRSIAPY rebalancing between ETH or USDC for $3 million at once, the Time-Weighted Average Price mechanism can split rebalances into consecutive $1M orders every 15 minutes ($3M over 45 min).

As RoboSets continue to scale up to $10M or $20M+, our new rebalance mechanism will lead to less slippage and less market impact during Set rebalances which will ultimately benefits Set holders.

Additionally, this will allow us to add new ERC20 assets to RoboSets (e.g. WBTC) that may not be as liquid as ETH/USDC while keeping slippage and market impact low during trades.

In the coming weeks, we’ll be deploying upgraded RoboSets that take advantage of the new TWAP mechanism. Nothing is changing for now — we just wanted to give our community a heads up ahead of time. More details can be found below.

RoboSet Upgrade Rollout Plan

Soon, we’ll be redeploying our most popular RoboSets (such as the ETHRSIAPY and ETHMACOAPY) with the new rebalance mechanism. These upgraded Sets will follow the same strategy and have the exact same parameters as the existing Sets but will have the added ability to execute rebalances using TWAP.

We will also be redeploying some RoboSets with updated rebalance criteria such as reducing rebalance execution time and relaxing rebalance intervals (e.g. 48 hours instead of 96 hours for the ETH20SMACO).

Important note: We will continue to support all non-TWAP based Robo Sets and we have no plans to discontinue support for them.

The existing non-TWAP version of that Set will be moved to the Legacy Sets tab on the TokenSets Explore page — If you are an existing holder, you will always be able to view Legacy Sets in your account page. We’ll also be disabling the ability to buy those legacy Sets through the TokenSets front-end. We encourage users to buy (or convert) into the TWAP version.

Make sure to subscribe to RoboSet notifications to be notified first when your RoboSet is upgraded!

Social Trading Sets

As Social Traders already have full control over when to trigger rebalances for their Sets, they do not need to be redeployed and will be able to take full advantage of the TWAP mechanism once it’s ready.

Conclusion

We’re excited to bring TWAP-enabled RoboSets to you in the near future. For now, make sure to subscribe to our newsletter, follow us on Twitter and join the conversation on Discord in order to stay up to date.

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