US-based blockchain startup Set Labs Inc. has announced the launch of TokenSets, a platform for automated portfolio management of crypto-assets using “tokenized trading strategies.”
Initially, TokenSets will feature two strategies: Buy The Dip, Sell The Rip 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 go down, and sells when prices go up to lock in gains.
Meanwhile, the Buy And Hold strategy is designed for people who believe in the long term outlook of the underlying crypto despite short term price movements. The strategy automatically rebalances the underlying crypto monthly to maintain a fixed ratio over time.
These strategies are represented by so-called Strategy Enabled Tokens, or Sets. A Set is actually ERC20 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.
Since Sets are ERC20 tokens, they can be exchanged on 0x, Kyber, or Uniswap, shorted using dYdX, lent out for interest on Compound/Dharma, or potentially used as collateral to borrow on MakerDAO.
In the future, TokenSets plans to support more portfolio strategies such as moving averages, stop losses, and dollar cost averaging. It will also allow traders to create their own strategies.
“Effectively managing a portfolio requires a high degree of technical knowledge, time, and discipline. Not everyone can do it,” said Felix Feng, CEO of Set Labs Inc.
“With TokenSets, employing the same best practices and strategies that professionals utilize has become an order of magnitude easier. This is a significant step forward in making wealth creation tools accessible to everyone in the world.”
TokenSets is the first application built on the Set Protocol, which allows for the creating, issuance and management of portfolios of ERC20 tokens. Set Labs Inc. is the company building the Set Protocol and focuses on developing infrastructure and tools around token aggregations, bundles or baskets of tokens.
In 2018, Set Labs Inc. raised US$2M in a seed funding round led by Craft Ventures and joined by investors including Vy Capital, DFJ, and angel investors like Scott Belsky.