Introducing The Asset Manager Suite

After 3 months of operating in public beta, Set Protocol V2’s Asset Management Suite is officially live today! Our mission is to accelerate the adoption of on-chain asset management and we believe that V2 of the protocol gets us closer to achieving that goal.

Learn more at TokenSets, read the documentation, collaborate with the Set team, or join us on Discord.

Motivation

In September, we quietly rolled out Set V2 with the launch of the DeFi Pulse Index (DPI) and the Uniswap Yield Sets, demonstrating the multi-asset, trading, and yield farming capabilities of the protocol. Fast forward to today, Set now secures over $100M in assets across Set’s ecosystem.

Since V2 came out, we’ve seen significant interest from DAO treasuries, DeFi fund managers, and crypto analytics platforms in using Set as an infrastructure solution to power managed accounts and create structured products. Existing solutions are inadequate as:

• Building it yourself is costly, difficult, and requires significant development and security resources.
• Other solutions may not support all the desired user functionality out of the box such as discretionary trades, farming, margin trading, etc. or are permissioned by governance.

Set Protocol V2

Set Protocol V2 is a protocol that enables anyone to create a tokenized basket (“Set”), accept user capital, implement a fee option, and access DeFi. Set aims to be the most trusted, safe, and full featured asset management infrastructure for:

• Developers/Asset Issuers who want to create structured products or social trading businesses.
• Investment professionals who want a low-overhead way to demonstrate a track record.
• Individuals who want to launch a segregated DeFi product for their friends/family (and for potential tax-advantaged benefits — speak to your own CPA about this).

With Set Protocol V2, you are able to:

• Create a Set: Without permission from anybody, deploy a Set — an ERC20 token that represents an exchange-tradable basket of digital assets that has a smart-contract or human manager.
• Accept User Capital: Users are able to mint Sets using a variety of means including basic issuance (bring all the components yourself) and NAV issuance (mint using a single component — coming soon in the UI).
• Make DEX Trades: Integrations with Uniswap, Sushiswap, 0x, 1inch, and KyberNetwork allow Sets to make adjustments to Set allocations.
• Enact a Fee Option: Set creators are able to enact usage based fees such as streaming fees.
• Participate in Protocol Governance: Use tokens in your Set to vote on governance enabled protocols (coming soon on UI, see docs for current use)
• Make Margin Trades: Integrations with Compound and AAVE will allow managers to put up assets as collateral and draw out assets to margin trade (coming soon).
• Lending: Enter money markets such as lending on Aave.
• Participate in Yield Farming (Coming soon): Enter liquidity pools (e.g. Uniswap/Sushiswap/Curve), lending on Aave, and stake tokens to earn yield on Sets.

Set Protocol is open source and anyone can propose new exchanges / adapters on our repository here.

Case Studies

• Index Coop: Set is the underlying infrastructure for the DeFi Pulse Index (~$70M TVL), which has successfully performed trustless rebalances and meta-governance activity.
• Yam Finance: There is significant overhead to DAO treasury management, and Yam is utilizing Set to empower DAOs to make their treasuries productive.
• Ember Fund: Getting started with non-custodial infrastructure is difficult and costly and Ember, a mobile application that enables retail users to invest like a cryptocurrency hedge fund, is utilizing Set to get to market quickly.
• Scifi Finance: Set powers $SCIFI, an anonymously run DAO-governed crypto index with $2M+ AUM already

Security Considerations

While the protocol has been audited for any unexpected interactions, there are still some known behaviors that managers and users should be aware of:

Managers

• Rebase tokens and non-ERC20 are not compatible with the current system: Any Set that holds these tokens may be liable to unexpected dilution/loss of user capital.

Users

• There are no inherent limitations on managers behavior. While managers cannot directly take custody of funds, beware that managers can trade into any token they want. This means legitimate components could be traded for any random token.
• Managers have the ability to adjust streaming fees at their discretion. While fee adjustments are not back-dated, they can be increased up to the maximum amount specified by the manager upon deployment.

While some Sets will be managed by smart contracts that can help curtail these behaviors, know that many will not and that you will be trusting the manager to act appropriately. Additionally, as more features are added there are further behaviors not enumerated here that will need to be taken into account.

Create Your Set on TokenSets Today

Get started with your Set today on TokenSets with a few clicks. With this release you are able to create a Set, make trades using DEX liquidity, and accept capital.

Create Your Set

View Your Set

Manage Your Set

V1 Sets

Existing V1 Sets sets will continue to be supported on TokenSets in the explorer. We will release an update with a migration schedule in the coming weeks.

What’s Next

In the traditional financial world, there are 120,000+ registered mutual funds vs. 16 stock exchanges, demonstrating the breadth of fund products. We expect this diversity and ingenuity to be carried over to crypto, and Set aims to accelerate and empower this activity.

We’re excited about what is going to be on Set V2. Create a Set today on TokenSets, engage with us by joining our discord channel, and sign up here for a deeper conversation with the Set team.