Following the DeFiPulse Index, Set Protocol is showcasing its first yield farming strategy with the launch of the ETH USD Yield Farm Set.

The USDAPY Set leverages UNI token farming to recursively aggregate yield from the ETH/DAI UNI rewards pool by normalizing UNI rewards back to ETH and DAI, acquiring more LP shares and farming more UNI.

Normally, a user would have to determine which incentivized pool they’d want to join, acquire equal parts of that asset pair, and then add liquidity to Uniswap in order to start receiving UNI rewards.

This new Set allows users to enter with a single asset and get access to a farming strategy that automatically claims UNI tokens, sell it for the underlying assets, and reinvest earnings back into the incentivized Uniswap liquidity pool. By pooling funds and automating the work that goes behind farming UNI, Set Protocol is saving end-users time and gas fees.

In return for this convenience, Set Protocol has introduced a 0.3% withdrawal fee when exiting this yield farming Tokenset. There is also a 5% fee that is applied to all claimed LP rewards, paid to the Set Manager who will utilize the funds to the pay gas costs required to claim, sell, and stake tokens received from Uniswap LP rewards.

Besides the above fees that are accrued to the Set Protocol, there is a 0.35% issuance & redemption premium that is used to protect against oracle related arbitrage attacks and is shared pro-rata with existing holders of the Tokenset.

More info on the USDAPY Set and the current returns offered by this tokenized yield farming opportunity can be found here.

Why Should I Care?

Set Protocol is one of the most product-focused companies in the crypto space, especially when compared to many of the forked projects that have recently come into prominence. By giving yield farming a UX makeover and a touch of professional flair, they’re helping retail users access DeFi yield with a fraction of the usual headaches.


The team at Set is planning to keep pace with DeFi and keep shipping new Sets at a lightning pace.  While there are some additional fees compared to yield farming yourself, the simplified on-ramp and recursive farming is extremely important to the sector’s growth.

While the Set is currently farming UNI, the new Sets are designed to be upgradable, meaning that as a better opportunity comes long for ETH and DAI liquidity, the USDAPY Set is sure to take full advantage.

Check out the SetV2 Rollout plan here and follow the project on Twitter to stay up on the latest.