The Set V2 Rollout Explained

Published in

Set Labs

3 min readSep 4, 2020

In this piece, we’ll be going over what the Set v2 rollout plan will look like over the coming weeks and months. As previously outlined, the major features that are coming as part of Set v2 are:

Multi-asset support
Index Sets
Yield Farming
Flexible trade execution
Significantly reduced gas costs

As these features are major changes to the protocol, they will be rolled out in multiple phases which we’ll detail below.

Phase 1 — Multi-Asset Support and Index Sets

In phase 1 of the Set v2 rollout, the protocol will support Sets composed of more than 2 assets which means that the protocol will be able to support a brand new product — Index Sets. With this, we’re adding support for a range of new assets including DeFi tokens, additional stablecoins, liquidity provider (LP) tokens and synthetics that can be held inside of a Set.

Index Sets can be composed of any number of tokens in any configuration that the creator so chooses. This leads to reduced gas costs for users as they only need to purchase the index Set once instead of purchasing all of the individual tokens that the index is composed of. Additionally, index rebalances are handled automatically which saves users time and money (in the form of gas fees).

We expect to see many creative index Sets deployed over time from indexes of popular DeFi tokens to thematic indexes. Set managers will their pick of Ethereum assets that have price oracle data to

Phase 1 is expected to go live this month with a very exciting initial product at launch!

Phase 2 — Yield Farming

As outlined in our yield farming deep dive, we’re bringing this recent DeFi craze to Set in v2 in a big way. Yield Farming Sets will allow for automated farming, significant saving on gas fees for users and, in phase 3, allow for anyone to create their own strategy using the Set v2 infrastructure.

The first yield farming strategies that are being deployed in phase 2 will be managed by the Set team. These strategies will appeal to different levels of risk and reward so that users can choose what level of risk they are comfortable with.

Phase 2 is expected to roll out soon after phase 1.

Phase 3 — Set Managers and Trading Improvements

Phase 3 will enable a range of new features for Set Managers to take advantage of including the ability to trade on any decentralized exchange, trade synthetic assets and incorporate margin & futures trading into their strategies. With these improvements comes enhanced protocol integrations and Set v2 will be able to natively interface with popular DeFi protocols like Balancer, Curve, Synthetic, Aave, Compound, Uniswap and more.

In phase 3, Set Managers (aka Social Traders) will be able to create their own yield farming strategies. There will be all types of managers that have different risk appetites and farming strategies. Some may prefer to always chase the highest and riskiest yield in DeFi while others may play it safe by settling for lower yields in more battle-tested protocols. As a Set user, you’ll be able to choose which manager you’d like to delegate your capital to based on your own risk appetite.

Phase 3 is expected to go live by the end of 2020.

Conclusion

We hope that you’re as excited as we are about the rollout of Set v2.

If you have any ideas on other types of products that you want to see in the various phases of Set V2 or want to create your own V2 Set, reach out to us at hello@setprotocol.com, or ping us on our Discord at https://discord.gg/kNsYA6A.

Learn more about Set and join our community