For those who have been keeping up with Set Protocol, you may have noticed the gradual unveiling of new features geared towards an optimized trading experience. Whether it be a new onboarding flow, cToken trading pairs or LINK-based Sets, there’s no denying that TokenSets is currently as powerful as ever.
Today, Set Protocol furthers that growth by enhancing their Social Trader experience, namely through the usage of new assets in tandem with an innovative incentive program.
1/ Today, we're excited to announce the launch of two major new features to Set Social Trading? – @compoundfinance cToken & @chainlink LINK support and a new incentive structure for Social Traders!
Get started on @tokensets: https://t.co/cGuneqBofThttps://t.co/5bG61YnGBa
— Set (@SetProtocol) March 30, 2020
For those unfamiliar with Social Trader, sophisticated traders and thought leaders teamed up with Set Protocol to offer custom Sets – all of which are structured using different indicators and investment strategies. Up until now, Social Sets were limited to ETH, BTC and stablecoins like USDC and DAI. Even still, they garnered $2.5M of capital inflow in the past 2 months.
What’s New?
With this announcement, Social Sets just got an upgrade. Right off the bat, Traders can incorporate interest-bearing assets like Compound cTokens for when Sets are rebalanced into a stable period. Similarly, Social Traders can now add LINK – the first of a wave of new Ethereum-based which are likely to make their way into the platform in the coming months.
Beyond the optimized Sets, the more novel aspect of this upgrade is that of a new incentive structure. For those who weren’t aware, Social Traders can set an Entry Fee, essentially taking a fixed percentage off the top when users purchase their Set. With this new upgrade, there are now 3 types of Social Fees that Traders can draw from:
- Entry Fees – Paid when a buyer purchases a Set
- Streaming Fees – Paid as a percentage of the Sets total market cap after a fixed period of time (i.e. 1 year)
- Performance Fees – Paid when a Set outperforms a benchmark on the overall market.
Interestingly enough, we saw most Traders shift their fees as follows:
“Most of the upgraded and new Social Sets launching today have an entry fee of 0%, meaning that a trader will only earn fees based on performance and streaming fees. If the trader performs well against their chosen benchmark asset by making profitable trades, then they will be rewarded with fees. Conversely, if the trader performs poorly and does not make profitable trades, then they will not earn any fees. “
What to Expect
For our TokenSet power users out there, it’s worth taking a look at which Sets have changed using this spreadsheet.
Across the board, virtually all Sets have been upgraded to cUSDC, effectively earning their tokenholders passive income as they remain in a stable phase.
For anyone who was holding one of the aforementioned Sets, it’s worth noting that they have now be shifted to a “Legacy Set” tab. As such, users must sell their old Sets via the TokenSet dashboard in order to purchase their newly upgraded counterpart.
Why Should I Care?
This upgrade is perhaps one of the most exciting since the launch of Social Trader itself. For many of us expending capital into TokenSets, the newly launch incentive program drives a new wave of competition. As a buyer of Sets, this means we can expect more robust Sets which are far more incentivized to earn profits for their tokenholders.
Huge new updates to Social Trading live today!
– Improved alignment of incentives btwn trader + followers
– New Social Trading Asset Support for @compoundfinance cTokens + @chainlink
– New traders going live + 6 new Sets https://t.co/pj48vyFimT
— Felix {Setoshi} Feng (@felix2feng) March 30, 2020
Similarly, there is no longer a need to sacrifice the interest-earning opportunities that came with Robo Sets in order to partake in one of the many unique Social Sets currently being offered.
Moving forward, we expect Set Protocol to continue serving as a leading asset management tool. As more Sets, Traders and assets are added to the platform, the endless possibilities continue to unfold.
To get started with TokenSets, head over to their full dashboard here.
To keep up on all things Set Protocol, be sure to follow their official Twitter here.
Cooper is focused on building compelling blockchain products. He currently works as the managing director at Fitzner Blockchain Consulting and is a contributor to DAOs like MetaCartel and Moloch. He is an active member of the Ethereum community and has a strong interest in for-profit businesses such as The Block Crypto and Messari.
