Odaily Frontline | Set Protocol welcomes v2 upgrade, introducing open source hedge funds into DeFi
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Summary:
Summary:
- Set Protocol integrates the most popular protocols of DeFi, aiming to provide more strategies for fund managers;
- The latest upgrade will enable new strategies to be implemented on Set Protocol, but can also be used to improve existing strategies to increase returns;
Set Protocol aims to impact the financial services industry by making investment strategies created by experienced traders more accessible to retail investors. The upcoming v2 release will allow fund managers to open source complex investment strategies that anyone can invest in.
first level title
Set Protocol aims to make DeFi investing easy
Investing automation tool Set Protocol will expand its product range with new features in the coming months. The launch of the product will allow retail investors to replicate complex strategies developed by the best crypto traders.
There are over 50 unique Sets that use different strategies and tokens to generate rewards for users. Some are bot strategies developed by the team behind Set Protocol, while others are designed and managed by experienced traders. All an investor has to do is deposit tokens into a set (Set), and forget about the rest.
With the new upgrade, Set greatly enhances the tools available to fund managers. Currently, Sets can only support strategies for two assets. The latest update will allow more than three assets to be included in a Set.
Set further integrates with popular protocols such as Uniswap, Balancer, Curve, dYdX, and yEarn Finance. The integration with dYdX will allow Set's fund managers to create strategies involving margin trading, while popular automated market makers such as Uniswap and Balancer will incorporate liquidity provision into the mix.
Existing strategies can also be optimized with extension sets, such as the ETH Profit Taker Set. This strategy initially consists of 100% ETH. Once its price reaches $300, 10% of ETH is sold to buy cDAI. ETH reaches $600, the second rebalance will sell more ETH to buy cDAI. The purpose of this is to maintain a 90:10 ratio between ETH and cDAI.
This strategy can generate higher profits if the ETH is exchanged for regular DAI and deposited into yEarn Finance. Since yEarn is a premier yield aggregator that ensures lenders get the best rates in DeFi, investors will get better returns thanks to their 10% higher yielding DAI.
Token Sets make it easier for non-financial professionals to access complex investment strategies in DeFi. By combining the utility of permissionless smart contracts with the experience of long-time crypto traders, Set Protocol strives to bring retail investors the best investment strategies in the crypto space.
