What is TokenSets?
TokenSets brings automated asset management to crypto. There are two types of trading strategies available: Robo Sets (which are based on algorithms created by the Set team) and Social Trading Sets (which are built by a trader). Both are decentralized - meaning you remain in control of your assets. To get exposure to a Set strategy you simply buy a token that represents a portfolio of assets managed according to that strategy.
Why does it matter?
Set's CEO Felix Feng says Set: "inherits all the benefits of DeFi [decentralized finance]. It's accessible, it's 24/7, it's global, it's permissionless, and every trade & transaction can be tracked on the blockchain.”
The project aims to "help people easily buy an asset that does all of the smart management for the user holding the Set", according to Set's Chief Product Officer, Inje Yeo.
How can I use TokenSets with Argent?
- Open Argent
- Tap Invest
- Tap Robo TokenSets / Social TokenSets
- Tap on the investment you are interested in
- You will be redirected to the menu where you can follow on-screen instructions to Invest or Sell your Set investment.
Investments are in ETH. When you sell though, you may receive a small fraction of the assets in another token too. This is because the Set you bought might have rebalanced and not have comprised 100% ETH at the time you sold it.
These videos show how to access Set in Argent.
How does it work?
Portfolios of digital assets (like Ethereum and DAI, a stablecoin) are represented by Set Tokens (or 'Sets'). Each portfolio is managed according to a specific trading strategy. For instance, by automatically exchanging between Ether and USD according to the moving price average. Some of the approaches available include trend trading, range bound, and buy and hold sets. You can explore them all here.
These are automated portfolio management strategies that trade according to rules encoded in smart contracts.
Robo Sets therefore differ from traditional robo-advisor platforms, such as Betterment, who ultimately hold custody of your assets.
Social Trading Sets
These let you follow the trading strategies of other individuals.
Traders can set a small fee for their Trading Sets, and with TokenSets' Leaderboard feature anyone can compare and track the performance of the strategies on offer.
Which Sets are available in Argent?
As of 21 May 2020, not every Set is available through Argent. We plan to support as many as possible as soon as possible.
The reason we don't support every Set today is due to the compatibility of the exchange we integrated with and the exchange that supports some of the tokens that form each Set.
Where can I go to learn more?
- Start with Set's FAQs. There are then more details on Sets in this 'how to'.
- For the more technical side, their whitepaper is here.
- Check out their intro video for more details.
- Follow their Twitter and join their Discord
Argent users supply assets to TokenSets at their own risk. TokenSets's overview of their risks is the best place to start. Categories of risk they identify include: smart contract, asset, liquidity, trade performance, centralization, oracle and more. When portfolios rebalance there can be slippage due to changing ratios of collateral
The full terms of service for TokenSets are available here.