Strategy Enabled Tokens: Coming Soon To TokenSets

Today, we’re thrilled to announce that TokenSets will offer Strategy Enabled Tokens, tokens that automatically enact portfolio strategy best practices simply by holding an ERC20 token.

Take the emotional risk out of crypto portfolio management — simply Set it and forget it! Get your hands on these Strategy Enabled Tokens on TokenSets, coming April 22, 2019. Sign up here!

Launch Strategies and Sets

Range Bound Strategies

Range Bound Sets were crafted for those who wish to automate buying low and selling high — capture local maxima and minima simply by holding a Set.

The Range Bound strategy buys a target crypto asset when prices go down, and sells when prices go up to lock in gains. Users typically subscribe to this strategy more when markets move sideways.

The Range Bound Sets we’ll be releasing with are the:

  • ETH Low Volatility Set — A Set made up of 50% ETH and 50% DAI, rebalancing to more ETH when ETH prices go down by 25%, and rebalancing to more DAI when ETH prices rebound.
  • BTC Low Volatility Set — A Set made up of 50% BTC and 50% DAI, rebalancing to more BTC when BTC prices go down by 20%, and rebalancing to more DAI when BTC prices rebound.
  • ETH High Volatility Set — A Set made up of 50% ETH and 50% DAI, rebalancing to more ETH when ETH prices go down by 40%, and rebalancing to more DAI when ETH prices rebound.
  • BTC High Volatility Set — A Set made up of 50% BTC and 50% DAI, rebalancing to more BTC when BTC prices go down by 30%, and rebalancing to more DAI when BTC prices rebound.

Buy And Hold Strategies

The Buy And Hold strategy was crafted for people who believe in the long term outlook of the underlying crypto, despite short term price movements.

Protect yourself from over exposure to a single asset by maintaining a specific ratio of underlying crypto assets.

The Buy And Hold Sets we’ll be releasing with are the:

  • Bitcoin Enthusiast — A Set that’s weighted more towards BTC for believers in Bitcoin.
  • Ethereum Enthusiast — A Set that’s weighted more towards ETH for believers in Ethereum.

TokenSets will support more portfolio strategies, such as short strategies, composite short & long, and algorithmic strategies. In the future, we aim to allow you to create your own strategy.

How To Get Started

Step 1

Go to www.tokensets.com and choose a Set that best aligns with your crypto outlook.

Step 2

Click “Buy” and input how many of your chosen Set you want.

Step 3

Confirm your buy order, and you’re all Set!

A Deeper Dive

Liquidity

Sets automatically source spot liquidity from decentralized exchanges to mint new Sets using ETH. Users do not need to hold the underlying tokens or wrap their Ethereum in order to buy a Set. Simply purchase Sets using ETH, and sell your Sets to receive ETH.

We will be sourcing our initial liquidity from Kyber Network. This allows TokenSets users to:

  • Access Multiple Liquidity Sources — Kyber sources liquidity from Uniswap, Bancor, DutchX, OasisDEX, Airswap on top of their already existing reserves
  • Get Algorithmic Price Selection — Kyber scouts for the best price for a given trade across all of their connected exchanges and reserves.
  • Make Instant Trades — Take advantage of instant buys and sells instead of waiting for someone to fill your order.

We’re excited to integrate with Kyber as our initial liquidity provider, and we’re open to adding more exchange integrations in the future as needed.

Set Details

As we gear up for launch, we wanted to share a few key facts about Sets that you may be interested in:

  • Wrapped Bitcoin — Sets use Wrapped Bitcoin (WBTC), the first ERC-20 token backed 1:1 with Bitcoin. Set is excited to be supporting this movement as a merchant and DAO member of Wrapped Bitcoin.
  • MakerDAO Price Oracles — We are collaborating with MakerDAO, using their decentralized price oracles to automatically source Ether and Bitcoin price information. This makes sure that no one party can manipulate prices during a rebalancing act.
  • Auto-Rebalancing — Sets automatically rebalance in a trustless dutch auction if the value of BTC or ETH has deviated enough from the target allocation, and if enough time has passed.
  • No Fees — These initial Sets will collect zero fees, being completely free to use during the opening launch.

What’s Next

This is only the beginning. We’re excited to share the next leg of our journey with you in the coming weeks as we gear up for launch. We plan on releasing more strategies, Sets, and tools for anyone wanting to create personalized strategies in the coming future. Let us know in the comments which Sets you’re interested in.

For the technically savvy, we’re preparing a supplementary white paper along with a detailed technical write up on our smart contract system.

If you are interested in being one of the first to own Strategy Enabled Tokens, make sure to sign up here.

Join us in our Telegram channel, tag us on Twitter, or email us at hello@setprotocol.com if you’d like to talk to us.

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Updated April 16, 2019