Set Protocol – a sector-leading asset management platform – has seen a steady uptick in volume in light of recent market volatility.
For those unaware of Set Protocol, the platform offers sophisticated trading strategies in the form of ERC20 tokens called Sets. These tokens – all of which can be found here – are composed of a variety of indicators and assets.
Following the introduction of LINK-based Sets just a few weeks back, it’s clear that the protocol is gearing up for enhanced composability in coming weeks.
Earlier today, Set Protocol announced the integration of cToken-based trading pairs, effectively making it easier for users to take advantage of Yield Sets.
1/ Today, we’re excited to announce the introduction of @compoundfinance cToken Trading Pairs to @tokensets!
This new feature allows users to buy or sell cToken-enabled Sets using any of our supported tokens (ETH, USDC, DAI, WBTC and LINK)!
Get started: https://t.co/Y6Y0LTjVDI pic.twitter.com/cYmyfgyPCi
— Set (@SetProtocol) March 23, 2020
Why Does This Matter?
Yield-based Sets are a broad term used to classify Sets which rebalance to an interest-earning stablecoins like cUSDC when they are in a stable phase.
For those who have yet to interact with Yield-based Sets it’s important to recognize that in the past, the only way to enter into these Sets was to actually acquire the interest-earning asset(s), or in this example cUSDC.
For many new users, there was a slight degree of confusion as to how to acquire cUSDC, as many assumed they would need to borrow it from Compound to get started.
Other users recognized that the best way to do this was to acquire USDC on a DEX like Uniswap, send that USDC to Compound, lock it for cUSDC and then use that cUSDC to buy the Yield Set.
Now, with the newest introduction, traders can take advantage of the aforementioned steps simply by spending ETH, DAI or any supported token. Here’s a look at how it works:
“The ETH is automatically traded for USDC on Kyber Network and 0x Protocol (to get the best spread), deposited into Compound and then deposited into the Set and issued to the buyer!”
Perhaps most important to you as an end-user is that all of this happens natively in the application using smart contracts – saving you time and money!
Composability is Key
Tying all of this back to the larger narrative of DeFi composability, we expect upgrades like this to be the first of many value-added features to make their way into the platform in the near future.
Set is the ultimate money lego ??
In this piece, our new @tokensets ambassador @Cooopahtroopa details how Set’s composability can work with almost any asset or protocol on Ethereum.https://t.co/YhSKMAImud
— Set (@SetProtocol) March 9, 2020
As we continue to watch the advent of new Sets courtesy of Social Trader, it’s likely that this particular feature will encourage more Traders to issue their own Yield Sets, effectively passing the passive benefits of annualized interest down to their holders.
In the meantime, be sure to keep a close eye on how to leverage Sets to navigate the murky market conditions and until then, join the conversation on their newly launched Discord!
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.
