Set Protocol is a non-custodial protocol built on Ethereum that allows for the creation, management, and trading of Sets, ERC20 tokens that represent a portfolio or basket of underlying assets. Each Set operates and periodically rebalances its portfolio according to a strategy coded into its smart contract. Set Protocol was announced in Nov. 2017, and its first user-facing application, TokenSets, launched in Apr. 2019. TokenSets currently supports DAI, ETH, WBTC, USDC, cUSDC, and LINK.
TokenSets offer two types of sets: social trading sets with strategies executed by human traders and robo sets with hard-coded strategies including trend trading, range-bound, and buy and hold sets. Each Set has its own criteria for when to rebalance the weight of its portfolio of assets. When a Set's rebalancing criteria are met, a grace period starts that lets holders opt out prior to to rebalancing. After the grace period, transfer of the TokenSet is paused until the rebalance is completed via a modified dutch auction process.
Set Protocol and TokenSets currently charge no fees and have no native token (aside from each TokenSets' ERC20 token). Set Protocol has undergone two independent audits from [ChainSecurity, https://www.setprotocol.com/pdf/chain_security_set_protocol_report.pdf] and [Trail of Bits, https://www.setprotocol.com/pdf/trail_of_bits_set_protocol_report.pdf].
How to use Set Protocol?
To get started, visit [TokenSets, https://www.tokensets.com] where you can learn about each Set's strategy and performance and buy, sell, and track Sets. First, log in (with either a phone number or MetaMask), explore sets, and click 'Buy' on your desired Set page.