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.
This new feature allows users to buy or sell cToken-enabled Sets using any of our supported tokens (ETH, USDC, DAI, WBTC and LINK)!
— 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.
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 🧱
— 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.
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.