Set Protocol – an automated asset management platform – has gained strong momentum in the past year thanks to their foundation of over 20 unique trading strategies each represented as unique ERC20 tokens called Sets.
To learn everything there is to know about Set Protocol in 5 minutes or less, check out this review.
The project’s asset management exchange – TokenSets – received a new makeover today with the launch of Social Trader – an initiative focused on allowing community creators to create their own Sets.
You can now gain exposure to 18 strategies from 13 unique traders by simply minting a Set!https://t.co/ggqZ2XMyrY
— Set (@SetProtocol) January 21, 2020
Social Sets allow users to copy trading strategies from leading community members, with the creators of those Sets receiving commissions on each purchase. The introduction of Social Trader also comes with a Trader Leaderboard – allowing new users to see which Social Sets are receiving the highest demand.
With 18 new Sets from 13 traders, Set Protocol basically doubled the number of available Sets overnight. Here’s a look at the first round of Social Set Creators:
- Aaron Kruger
- Andrew Wilkinson
- Anthony Sassano
- David Hoffman
- Eric Juta
- Fidelitas Lex
- Jeremy Guzman
- Michael Dunworth
- Muhd Amrullah
- Mujo Seriel
- Richard Burton
- Vangelis (Sanz Prophet)
Why Should I Care?
First and foremost, Social Trader just opened the floodgates for all those “paid-group leaders” to really put their money where their mouth is. With an easy way to mimic Ethereum-based trading strategies, the days of getting burned by getting in after your favorite trader enters a position and posts a screenshot once the asset is up 20% are long gone.
Social Sets act just like normal Sets. They’re algorithmically based, meaning non-technical users can now leverage trading indicators like Relative Strength Index and Moving Averages in their intended fashion, all without having to do a thing.
What this all points toward is competition over who can earn the highest returns on ETH investments. Theoretically speaking, those with the best trading strategies should receive the most volume and in turn, earn the most commission.
Not only are sophisticated now enticed by the profits from their original trading strategy, they now earn both clout and commissions for sharing them for the rest of the community.
When heading over to the TokenSets market you’ll notice that there are now three different tabs for sets. Users can toggle between Social Sets (created by Traders) and Robo Sets (created by Set Protocol) to clearly distinguish the creator(s) of various Sets.
Similarly, the Trader tab lists the leading Set Creators in terms of Market Cap, Set Holders and Number of Sets Created.
A little more obscure is the addition of “Buy Fees”, or the service fee associated with purchasing a Social Set.
“This is the fee paid to the Set creator upon purchase. For example, if a user purchases $100.00 worth of a set that has a buy fee of 2%, then $2.00 worth of the minted set will be transferred to the Set creator’s address. This value can range from 0 – 5% and will be updateable by the Set creator with a 7 day confirmation delay.”
Lastly, Social Trader introducer “Feeds” which show how each Trader is using the platform. While this feature is entirely new, it’s safe to assume that traders will be able to share which Sets they are also purchasing – thus making it easier for nontechnical users to know which Sets they *could* enter based on the activity of their favorite trader.
The Big Picture
Taking a step back, let’s take a second to applaud Set Protocol for the number of novel gamification initiatives introduced with the launch of Social Trader.
While a number of these first rounds of Social Sets are more geared at spreading the word about the power of Social Sets, those with sophisticated strategies certainly have the documentation to back them.
If one thing is for certain, competition is likely to bring out the best of the best – and the great thing about Social Trading is that the community gets to benefit from it.
If you’re a trader interested in creating your own Set, get started by filling out this form today.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.