Set Protocol live on Optimism — Enabling Structured Products on Layer 2
Today, we are excited to announce the launch of the Set Protocol on Optimism as we continue to strive to enable and scale best-in-class decentralized asset management infrastructure to the most exciting network ecosystems.
Scaling DeFi Structured Products
Trends are clear, investors will go to where investment opportunities and communities present themselves and thrive, especially so on EVM compatible networks that let these network participants use familiar toolsets to bounce between networks with ease (Avalanche, BSC, Polygon, Arbitrum, Optimism). We are also seeing important strides in increasing onboarding support from wallets and centralized exchanges in addition to a flurry of cross-chain bridging routers, all of which leave 2022 primed for significant growth.
Recognizing this, we want to enable the ability for Asset Managers to create, manage and monetize investment products on scaling solutions early into the ecosystem so they can best capitalize on the growth trajectory. Today we are excited for that to be on Optimism, a network, team, and brand we have had to pleasure to work with and, alongside the rest of the crypto community, are very excited to see thrive in 2022 with us alongside them.
Optimism is an EVM-compatible scalability solution for Ethereum that allows us to further scale adoption of our leading decentralized asset management infrastructure at a fraction of the cost whilst maintaining the security and decentralization benefits of Ethereum.
The ecosystem already boasts an array of DeFi primitives including AMMs, synthetic derivatives, options trading, binary options, and more. Over $400m of assets have been bridged from the base layer and protocols like Uniswap, Synthetix, Lyra, Thales, dHedge, Aave V3 are already deployed with highly sought after projects like Curve and Olympus DAO planning to do so soon. In 2022 we expect a stream of projects onboarding onto Optimism to follow in the footsteps of others as volume and active users continue to increase which naturally creates a flywheel of activity.
With this in mind, as asset management infrastructure it’s one of Set’s missions to ensure we are unlocking Asset Managers in creating structured products during the early stages of a network's ecosystem so they can best capture and take advantage of any native assets, initiatives, or liquidity incentives that might arise. This is in addition to Optimism being a far more scalable environment for operations compared to Ethereum in terms of portfolio rebalancing and management.
“Set Protocol’s deployment on Optimism unlocks a rich new ecosystem for builders and investors to experiment and create value in a new environment that furthers our mission to make crypto investing simple, safe & accessible for all”
Cormac Daly, leader of Index Coop’s automated indices pod
What’s next on Optimism?
Whilst today in this early deployment you can create and invest into Sets natively on TokenSets utilizing the great transactional benefits of Optimism compared to Ethereum, the real focus and excitement lie with our roadmap and platform-native DeFi integrations to come.
- Enabling issuance via 0x for Sets on Optimism, unlocking liquidity for all Asset Managers small and large for their Set products.
- Enabling leverage strategies within Sets via a native Perpetuals Protocol V2 integration. Create and be at the forefront of an exciting Optimism exclusive integration within Sets that will allow methodologies and asset managers to execute advanced algorithmic or discretionary leveraged trading strategies using Perpetual products.
- Integrating Borrowing & Lending of assets within Sets to make held assets productive within Sets.
- TokenSets UI Improvements. We know not all Asset Managers have the technical resources to take advantage of all the Set Protocol smart contract capabilities available, in 2022 we want to ensure that everyone from the largest decentralized asset management DAOs (Index Coop) down to hobbyist methodologies have access to the power of what Set can provide.
- Staked assets, with tokens having an increasing amount of novel utilities to incentivize long-term holding and growth, enabling the ability to stake these assets is key for asset managers to unlock their potential.
- Best in class products, we anticipate DAO’s, especially leading forces in DeFi index products such as Index Coop to take full advantage of this new deployment in the future to bring us what we have come to expect from the quality of their product suite ($DPI, $MVI, $GMI, $ETH2X-FLI, $DATA).
Are you building on Optimism and can see an opportunity to collaborate? Get in touch, we’d love to hear from you.
Getting Started on Optimism
Reference guide: docs.tokensets.com/alternate-networks/optimism
The easiest way to get started today in creating and managing your first structured product on Optimism is through our native dapp TokenSets. You will need ETH to facilitate transactions on TokenSets for creating a Set but also managing it going forward (rebalancing & accruing fees). The good news is that bridging to Optimism is very easy, below is a quick run-through of the native bridge over at gateway.optimism.io.
How can I bridge funds to Optimism?
Navigate to the Optimism Gateway, select the amount of ETH you would like to bridge over, and then click “Deposit.”.
You will then be prompted to confirm the deposit. Click “Deposit” and then confirm the transaction in your wallet. There will be a transaction fee associated with this, so try bridge when Ethereum network usage is low.
Once the transaction has been confirmed on Ethereum, it can take around 5–20 minutes for those funds to be accessible to use on Optimism. You are given the transaction links for both Ethereum and Optimism so you can track the progress.
Once your funds are available on Optimism, navigate over to TokenSets where you will find the ability to Explore Sets on Optimism from the dropdown menu at the top of the page. From here you can invest and create Optimism based Sets with your newly bridged ETH.
Now you are connected to TokenSets on Optimism, our documentation can guide you the rest of the way based on what your goals are. We can’t wait to see what you create!
For Asset Managers
Any questions? Let us give you the best chance of success in what you are trying to achieve by joining our Discord community and reaching out.