Why Buy a Set? A Short Overview
Sets are the bundling of crypto-assets into fully collateralized baskets, represented as investable ERC-20 tokens. Today, some of the most successful and diversified structured products are built on Set Protocol, such as the DeFi Pulse Index ($DPI), Metaverse Index ($MVI), and recently launched Bankless DeFi Innovation Index ($GMI).
These Set-based indices act as thematic investment vehicles that follow the manager’s methodology (investing strategy), allowing other investors to replicate an identical strategy by simply holding the Set in their wallet. Additionally, the underlying contracts enable management to access revenue through streaming fees and external integrations to other DeFi protocols such as Aave, which allows for on-chain leveraged trading strategies, fully managed and abstracted to the token holder.
The opportunities Set products provide traders & investors.
Sets being ERC-20 tokens means that they are fully compatible with wallets, exchanges, DeFi protocols, everything you would typically expect from tradeable tokens, so feel immediately familiar with holders. Why this is so appealing as a product is, for example, in the case of the newly released Bankless DeFi Innovation Index, a weighted basket of over ten separate high growth DeFi assets, you can access this diversified portfolio with one transaction as opposed to a tenfold more expensive process of buying the individual tokens and rebalancing to target weights, as well as the time investment necessary to replicate the methodology yourself.
In practice, Sets let traders and investors win by giving the most accessible access to diversified portfolio themes and complex leverage products whilst abstracting the costs and time away from them.
Where can I buy Sets?
Buying liquid Sets on decentralized or centralized exchanges is the same as the process you are probably familiar with; whether on Uniswap, Matcha, 1inch, Sushi, you can find where the sets are available for purchase using a platform such as CoinGecko. For example, in the case of the Bankless DeFi Innovation Index mentioned in this article, we can see a Uniswap market available to us and can directly navigate to the pool.
One final noteworthy feature of Sets: because they are 100% collateralized you can issue and redeem Sets such as $GMI, $DPI, or $MVI directly from the smart contract or via TokenSets, unlocking the ability for users to invest and divest into Sets irrespective of the Set’s market liquidity. This allows anyone to become an Asset Manager in the Set ecosystem, create novel products and distribute them in an entirely permissionless, decentralized manner.
Are you looking to create a unique product such as $GMI? Reach out to us and let’s see how we can best collaborate and set you up for success.
Want to learn more? 📚
- Where can I see popular Sets today?
- How do I invest in a Set, such as GMI?
- What is Set Protocol? (Video)
- I’m a developer. Where can I see more?