1/ Today, we are excited to introduce Strategy Enabled Tokens (coincidence? ?), tokenized asset management strategies facilitated by the Set Protocol smart contract system. Buy the dip ? and sell the rip ? automatically just by holding an ERC20 token. https://t.co/g83IUFgNuJ
— Set (@SetProtocol) February 27, 2019
According to the announcement, Stategy Enabled Tokens enable investors to set up their portfolios with predefined trading strategies, conditional trades, automatic rebalances and more simply by buying and holding an ERC-20 token.
With Sets, a passive investor can gain exposure to an index product that periodically rebalances itself while more sophisticated traders can institute automatic trading strategies. Each set is based on an underlying smart contract, which performs the predefined strategy. These contracts can utilize data from a variety of sources (Chainlink, Augur, etc.) to verify conditions.
As the announcement points out, the fact that these investment vehicles are ERC-20 tokens means they can be exchanged on 0x, Kyber or Uniswap, shorted using dYdX or lent out to earn interest using Compound or Dharma. They can also serve as collateral on platforms like MakerDAO or Nexo.
“What we’ve outlined is not just a conceptualization,” states the Set team. “We are close to protocol code-completion and are at the tail end of code audits from top security firms including Trail of Bits and ChainSecurity. We’ll soon be sharing details about the technical underpinnings in a separate whitepaper and follow-up blog posts and also our plan for a mainnet launch.”
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.