Thread by @sassal0x

0/ #DeFi Spotlight #5

Today, I’ll be explaining how @SetProtocol works.

With Set, crypto-assets can be bundled together which allows for the creation of a wide range of different baskets that can be automatically re-balanced using different strategies.

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1/ Set Protocols interface, TokenSets, allows users to buy and sell Sets. Currently, Set offers 4 ‘Range Bound Sets’ and 2 ‘Buy and Hold Sets’.

These Sets automatically re-balance between assets once certain criteria has been met.

2/ For example, users can purchase the ‘ETH Range Bound High Volatility Set’ and it will automatically sell DAI for ETH if the price of ETH dips more than 50% and sell ETH for DAI if the price of ETH rebounds more than 40% (with a medium to long term time horizon).

3/ Bullish on ETH but still want exposure to BTC? Buy the ‘ETH Enthusiast Set’ (a 'Buy and Hold' Set) to obtain an allocation of 75% ETH/25% WBTC that auto-rebalances every 30 days to keep the ratio of assets at 75%/25%.

4/ The Set token representing the basket of assets is also freely transferable & tradable and acts as a claim on the underlying assets (similar to Compound cTokens or Uniswap liquidity shares).

#MoneyLegos

5/ The future is bright for Set Protocol as potentially any indicator can be used for the re-balancing of assets.

For example, on-chain indicators such as the infamous NVT or the recently released SOPR could be used to buy and sell Wrapped BTC (WBTC).

6/ If you’d like to learn more about @SetProtocol you can read the comprehensive FAQ here: tokensets.com/faq

And get started by purchasing your first Set here: tokensets.com/explore