Introducing Set Social Trading
Our next major product release goes live early 2020 on TokenSets
Today, we’re very excited to give you a sneak peek of the next major feature being deployed to TokenSets — Set Social Trading!
Set Social Trading is a marketplace and network that enables traders to create their own trading pools where they can enact trades on commodities such as ETH, WBTC, USDC, DAI, cUSDC, and cDAI. Followers can then join these trading pools, copying every single action the Trader (or trading algorithm) enacts.
This feature is expected to go live in early 2020.
- Set Social Trading allows anyone to create their own trading pools and have followers join in
- Users can either become a Trader or a Follower (or both)
- Interested traders can fill out this form for early access
- More details on Set Social Trading will be available as we get closer to the planned launch in early 2020
Major Features of Set Social Trading
Strong Asset Offerings
The initial launch of Set Social Trading will include ETH/USDC pairs with eventual support for WBTC, DAI, and cTokens. In the future, we may consider derivative/futures products, incorporation of securities, and other ERC20 tokens.
Traders enact a trade for the entire pool by submitting an Ethereum transaction and publishing the reasoning/rationale behind their decision to TokenSets. Users who own a Set that uses the Trader as a signal will have their positions automatically rebalanced. The rebalance process is the same as any other Set — it kicks off a dutch auction where third party liquidity providers use the Rebalancing Dashboard to participate in the rebalance.
Cryptocurrency is a social phenomenon and we want to give our users the tools to capitalize on this with Set Social Trading. To that end, users will be able to explore a host of information about each Trader including: performance metrics, the fees they’ve earned, a social media feed and much more. We may even have a good-old-fashioned trollbox on TokenSets!
Traders will be ranked in accordance with their performance on a publicly viewable and verifiable dashboard. This feature will allow followers to quickly discern how a trader is performing against other Traders and make an informed decision about which trader to follow.
Why Become a Trader?
Traders are the heart of the Set Social Trading platform. They are the ones who create and manage the trading pools and Sets that allow users to follow them.
Leaders are motivated to gather followers because in return for managing the Set or trading pool they can earn fees. Users have complete visibility over the trader’s actions and can exit a trading pool at any point in time, except during rebalances.
If a Trader performs well, their reputation within the Set Social Trading platform increases which could bring with it additional benefits and rewards.
Why Become a Follower?
As a Follower, you get all the benefits of a trading strategy without having to worry about the execution — you simply choose the Trader you want to follow, deposit your funds into the trading pool that they manage, and let them do all of the work for you.
If the trader you decided to follow isn’t performing as you expected, then you can opt to sell your position and move your funds into another traders trading pool.
Followers also have the option to invest in multiple traders if they want to gain exposure to multiple trading strategies. For example, one trader may be partial to trading BTC but a follower wants exposure to ETH — they can simply filter the trader list to display only those who are actively trading ETH.
We believe that Set Social Trading is the next logical step in the evolution of Set Protocol and has been a part of our vision since we first created the protocol. It’s being deployed as a complementary feature to our existing offerings on TokenSets which means that all of our current Sets — like the popular ETH20SMACO — will still be available alongside Social Trading. Our team, Set Labs, will keep deploying Sets as we have historically been doing and we believe that Set Social Trading will supercharge the current offerings on TokenSets because it allows anyone to create their own Sets and trading pools.
We are currently looking to on-board traders ahead of our early 2020 launch. If you’re interested in getting involved with Set Social Trading, please fill out this form.