Update 1/21/20: Set Protocol Social Trader has launched
Set Protocol has quickly emerged as one of the leading solutions for traders to take advantage of complex strategies through the purchase of an ERC20 token.
For those unfamiliar with Set Protocol, the project bundles different tokens and trading indicators into unique assets called Sets. Each Set contains various parameters surrounding how it is weighed, when it is rebalanced and what trading conditions it favors. In practice, users purchase Sets using ETH, effectively allowing them to passively benefit from active rebalances during times of volatility.
Since its launch in 2019, Set Protocol has issued 20 different sets leveraging indicators such as Moving Averages, Relative Strength Index and most recently, inverse assets. Despite seeing a drop off in TVL during October and November of the past year, it appears that Set Protocol is starting to hit its stride again.
One of the biggest potential indicators for this success was the recent announcement of Social Trader – a way for any experienced trader to earn additional income through the creation of their own unique Set.
Why Does This Matter?
Whereas Sets were previously only issued by Set Protocol itself, Social Trader opens the gates for sophisticated traders to come in and further diversify the range of trading strategies available on the platform.
For average traders, this means that top traders will not only be sharing their trading strategies but allowing you to partake in those strategies in under a minute.
On the issuer’s side, Set creators stand to earn revenue every time someone purchases your Set, further incentivizing the community to create the best performing strategies possible.
In a market highlighted by volatility, Social Trader encourages the best of the best to put their money where their mouth is. Not only does the industry get to observe how top traders act, they also get to follow those strategies in real-time by holding their Social Set.
How to Get Started
If you or your business are interested in creating a Social Set, head on over to https://www.tokensets.com/social-trader. From here, you’ll be prompted to answer the following questions:
- How long have you been trading for?
- How often do you trade?
- What indicators and signals do you use, and what are your sources?
- Do you use existing social trading platforms?
- Can you provide a link to your profile on the social trading platform?
- What assets do you trade?
- Do you trade within one trading pair, or across multiple assets in the same strategy?
Please note that seeing as this program is just rolling out, you must be selected by Set Protocol to issue a Social Set. We can effectively view this period as a beta in which the Set team is carefully selecting top traders with high reputation (and provable performance) to ensure the Social Sets being offered are of the highest quality.
The first Social Set interview with Amrulluh highlighted his trading strategy, and what users can expect from his Set in the coming weeks.
Today we're introducing our Set Social Trader Spotlight Series, where we’ll give you insight into our launch traders that’ll be on the Set Social Trading platform upon launch 🎉
— Set (@SetProtocol) January 3, 2020
With this in mind, it’s likely that over the course of the next year, Social Sets will become permissionless, meaning that anyone can create and issue their own Set without inheriting permission from the Set Protocol team.
Over the past few weeks, we’ve seen Set Protocol introduce cTokens into various Sets. With this in mind, it’s likely that the platform will gradually introduce other DeFi assets such as Synthetix derivatives or Uniswap liquidity pool tokens.
If one thing is for certain, Set Protocol has created a strong foundation for future growth, and we here at DeFi Rate are excited to watch how the top Sets perform against the market in 2020.
For more news on Set Protocol, stay up with their official Twitter here.
Until next time, be sure to follow us for more news on all things DeFi!
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.