Set Releases TokenSets for Traders to Automate Crypto Asset Management with Investor Strategies
Set, an upcoming blockchain company, launched the Strategy Enabled Tokens (SET) in March. The SET token is based on Ethereum’s ERC20 protocol. Its intended use cases include automating trading strategies, portfolio allocations and other asset management functions.
This week, Set introduced yet another product called TokenSets. The new platform is the first of its kind in the world that allows traders and crypto hobbyists to automate trading strategies. As per the corresponding Twitter post, TokenSets enables users to ‘set it and forget it.’
Initially, TokenSets will support 6 Sets divided into two classes – range bound sets and buy and hold sets.
Range Bound Sets
Range bound sets are intended for the neutral – a trader who is nether bullish nor bearish on a particular digital asset.
This strategy automates the purchase of assets when their values plummet and their sake when value soars. This is aimed at capitalizing on the maximums and minimums of specific cryptos by holding a Set token.
Buy and Hold Sets
Buy and hold sets are designed for traders who are bullish on the future of particular crypto assets, but want to diversify the risk by investing in many tokens. This tactic automatically rebalances the underlying crypto to uphold a fixed ratio over time. These sets aim to protect traders who believe the future of digital assets from going all out on a single token.
Paul Veradittakit, a partner at Pantera Capital, noted that there is increased decentralized finance (DeFi) activities in lending, stablecoins, decentralized exchanges and derivatives. He further added that the launch of Set means that Ethereum users can now access an asset management solution for the first time.
The Sets are based on smart contracts which use data from various platforms before executing the two strategies as mentioned above. Because they are ERC20 tokens, Sets can be exchanged and leased out to earn interest.