Introducing ETH 20 Day MA Crossover Yield Set on TokenSets

The ETHMACOAPY is now live on TokenSets

Today, we’re excited to announce the launch of the ETH 20 Day Moving Average Crossover Yield Set (ETHMACOAPY).

The ETHMACOAPY Set supercharges our existing ETH20SMACO Set by swapping out USDC for cUSDC — an interest-bearing stablecoin. This means that when ETHMACOAPY is positioned in the stable asset, it’s generating interest via the Compound money market protocol!

This Set has been the most requested one since we launched support for cTokens and we’re excited that it’s now live on TokenSets!

Key Points

• You can now mint the ETHMACOAPY Set on TokenSets
• Existing ETH20SMACO holders can now easily convert to ETHMACOAPY
• The Set is currently below the 20 MA and positioned in cUSDC

The ETHMACOAPY Set

The ETH 20 Day MA Crossover Yield Set implements a crossover strategy on the ETH 20 day moving average indicator. Learn more about moving averages and crossover strategies here.

On a high level, the Set functions similarly to the ETH 20 Day MA Crossover Set. However, if the price of ETH falls below the 20 day simple moving average, ETHMACOAPY will rebalance into cash (cUSDC) and earn interest on Compound (instead of rebalancing into vanilla USDC).

The rebalance criteria for the ETHMACOAPY Set includes a minimum interval of 48 hours between rebalances and a confirmation period of 2 hours after the initial price-indicator crossover to reduce false positive signals. If the signal at the time of the initial crossover (e.g. price > moving average) matches the signal after 2 hours, then the Set will kickoff a rebalance. If the initial signal fails to match the signal after 4 hours, then the rebalance expires and another crossover must occur.

This differs to the ETH20SMACO Set which has a minimum interval of 96 hours between rebalances and a confirmation period of 6 hours after the initial price-indicator crossover.

How the ETHMACOAPY Set Performs

Disclaimer: The content below is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. The content below is provided for educational purposes only, and not indicative of future performance. None of the following should be interpreted as investment advice. The tools used below follow a predefined set of parameters and aren’t actively managed by Set Labs Inc.

This chart below compares the hypothetical performance of holding the ETHMACOAPY Set against holding ETH over the last 3 years, assuming a slippage rate of 0.7% during each rebalance (historical rebalance slippage has been lower). The model shows ETHMACOAPY would have outperformed over the given historical time period and underperformed in the bull market of 2017.

The chart below illustrates the ETH that would have been accumulated using the ETHMACOAPY Set following the same assumptions above.

It’s important to keep in mind the the charts above are based on a number of assumptions and are only meant for illustrative purposes. As always, past performance is not indicative of future performance.

These charts use generated ETH hourly data sourced from Gemini. In production, the ETHMACOAPY Set rebalances based on MakerDAO’s ETH price feed, which may output different results. If you’d like to play around with the data yourself (and tweak the parameters), feel free to fork the spreadsheet here.

Converting to the ETHMACOAPY Set

Holders of the ETH20SMACO Set can now convert to ETHMACOAPY by following the steps below. Do keep in mind that in doing so you are taking on additional smart contract risk due to cTokens being a product of the Compound protocol.

If ETHMACOAPY is currently positioned in cUSDC

Note: if you already have cUSDC, you can simply purchase the ETHMACOAPY using your cUSDC.

1. Head to the ETH20SMACO page on TokenSets
2. Hit the Sell button and select USDC from the Get dropdown menu
3. Hit the Preview Sell button and then hit Submit Sell
4. Once the sale has completed, head to the Compound USDC portal
5. Follow the Compound process to supply USDC to the protocol
6. Once you have cUSDC in your Ethereum wallet, you can head to the ETHMACOAPY page on TokenSets and go through the normal buying process
7. Done

If ETHMACOAPY is currently positioned in ETH

1. Follow Steps 1 to 3 above
2. Make sure that you have ETH in your wallet
3. Head to the ETHMACOAPY page, hit the Buy button and follow the process
4. Done

Conclusion

The ETH20SMACO Set is the oldest and most popular Trend Trading Set on TokenSets. We’re excited to supercharge the 20MACO strategy by offering the yield version of the Set!

If you have an idea for a strategy that you’d like to see on TokenSets, please don’t hesitate to reach out to us.

Developers interested in working with us can also reach out to our friendly team by emailing us at hello@setprotocol.com or by joining our Telegram chat.

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