- Understanding the utility of Set Protocols.
- Looking at the benefits and management of portfolios on TokenSets using Set Protocols.
TokenSets is a platform that was created by Set Labs Inc in 2017. This crypto trading platform runs on Set protocols. These Set protocols function on the premise of decentralization.
Ethereum acts as the basis for Set protocols to manage crypto assets. Investors purchase these Set protocols like ERC 20 tokens to trade among exchanges.
Felix Feng, Alex Soong, and Inje Yeo created Set Labs to address problems associated with managing digital assets. To make asset management easy to use, simple, and trustless, TokenSets was born.
Set protocol stands for Strategy Enabled Tokens. These protocols help investors to automate their asset management in strategic ways. To make this happen, TokenSets provide users with two protocols:
Robo Sets and Social Trading Sets.
Robo Sets are self-programmed strategies that execute using smart contracts. In this kind of set, human interaction becomes zero. These strategies execute themselves following set rules like trend trading and range trading.
Social Trading sets enable traders to create and manage their own strategies. This protocol works in contrast to Robo Sets. Social Trading provides its users with various strategies. This set includes both simple and complex strategies.
Advantages of TokenSets
Universal Accessibility–
This platform works on open-source AI, enabling anyone to manage their crypto assets.
Immediate completion of transaction–
TokenSets does not hold the contract between the inflow and outflow of the tokens. It works on rebalancing the transaction, meaning that the bidder only has to work upon time and gas to book the profits.
Decentralization–
Due to the platform running on Set protocols, data is not stored or exchanged using a central medium. Whenever a user has to execute an order, he can do so using any of the two protocols. Creation, management, and redemption of assets thus becomes easy.
DeFi Pulse Index enables the feature of decentralization on TokenSets. This index compares the performance of tokens in the DeFi industry.
To include a token on the DeFi Pulse Index, the token has to pass four criteria. The first two criteria evaluate the token’s characteristics, while the third evaluates the project’s characteristics and the last assesses the protocols.
The index shows the value of circulating supplies of the tokens in a weighted format. It aims at tracking the tokens which are part of projects that have a marketable value and scope for development.
How to create a portfolio on TokenSet
TokenSets also support various web3 wallets like Coinbase, imToken, and Trust Wallets. These wallets also come in mobile application formats that make accessibility easier.
To onboard the new users, TokenSets uses Fortmatic. This third-party application enables the users to get accustomed to the set protocols.
Apart from Metamask, by using Fortmatic, users can buy the set protocols of their choice. To do this, the user has to complete the following steps:
Step 1: Download the mobile application of Fortmatic/Add the site extension to Chrome
Step 2: Input the phone number to get SMS verification.
Step 3: Create a PIN
Step 4: Transfer ETH to start purchasing the Set protocols of your choice.
