TokenSets intends to support more portfolio strategies such as moving averages, stop losses, and dollar cost averaging.
At the beginning, TokenSets will feature two strategies: Buying and Selling The Dip and Rip respectively for Ether and Bitcoin, and Buy And Hold for Bitcoin and Ether combinations.
The Buy the Dip, Sell The Rip strategy buys a target crypto asset when prices drops, and sells when prices rises to lock in gains.
Also, the Buy And Hold strategy is designed for the market that believes in the long term outlook of the underlying crypto, despite short term price movements.
The strategy automatically rebalances the underlying crypto monthly to always provide a fixed ratio over time.
The strategies are represented by Strategy Enabled Tokens (SETS).
A SET is actually an ERC-20 token that represents a fully collateralized portfolio of other assets including Bitcoin (WBTC), Ethereum (WETH), and fiat-pegged coins (DAI). SETs automatically rebalance to make executing any portfolio strategy simple by holding a single asset.
Importantly, SETs are ERC20 tokens. Thus, they can be exchanged on 0x, Kyber, or Uniswap, shorten using dYdX, lent out for interest on Compound/Dharma. It could potentially be used as collateral to borrow on MakerDAO.
Future plans for SETs
Going forward, TokenSets plans to support more portfolio strategies such as moving averages, stop losses, and dollar cost averaging. Therefore, it will allow traders to create their own strategies.
Quoting CEO of Set Labs Inc., “Effectively managing a portfolio requires a high degree of technical knowledge, time, and discipline. Not everyone can do it.”
Promising future for Sets Labs Inc.
In 2018, Set Labs Inc. raised $2M in a seed funding round led by Craft Ventures and joined by investors including Vy Capital, DFJ, and angel investors like Scott Belsky.