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Overview
Welcome to Set's Official Documentation. This contains resources and guides for Set Protocol V2.
Set Protocol is a web3 asset management platform that provides financial infrastructure tooling to everyone.
The primary use case on Set Protocol is the construction of "Structured Products", which are customizable baskets of fully collateralized crypto-assets, represented as on-chain ERC20 tokens. These Set Tokens engage with popular Decentralized Finance (DeFi) protocols and follow the manager's specific strategy - this allows investors to replicate an identical strategy easily by minting or purchasing the Set.
The underlying smart contract suite supports external integrations with exchanges, lending platforms, automated market makers and asset protocols. More advanced strategies, such as yield farming, perpetual swaps, and margin trading, are also supported.
Today, some of the largest structured products by AUM (Assets Under Management), including the DeFi Pulse Index ($DPI) and ETH 2x Flexible Leverage Index, have been built using Set Protocol.
DPI
Investors allocate capital and receive the Set tokens that represent their share of the structured product. Investors retain full custody of assets because funds are secured by the Set Token contract, and are inaccessible to asset managers.
Managers maintain and rebalance structured products to satisfy their asset management strategies. Managers can offer their products to many different customer profiles: whether they curate products as investment opportunities for individual or institutional investors, or they curate products to service DAO treasuries. Managers can use streaming fees or performance fees to monetize their products to achieve profitability as their products grow.
Developers build the next generation of applications using Set Protocol as their base layer to achieve their financial objectives faster. Whether you are looking to develop an algorithmically rebalanced cryptocurrency index or a delta-neutral investment portfolio that caters to a narrow customer base - Set Protocol offers extensive developer documentation to explore the limitless opportunities that can be built.
Anyone can create structured products and define a custom methodology for end investors to dip into. The largest crypto indices today are built on top of the Set Protocol infrastructure:
Have a Structured Product idea that you think will be very successful? Submit your idea here and get in touch with us!
On-chain projects are trusting Set Protocol to manage their treasuries in a decentralized, customizable manner.
The Sushi DAO utilizes Set Protocol to manage and tokenize their treasury into $sushiHOUSE, with the aim of achieving long term capital appreciation through their preferred strategy. Additionally, Set Protocol equips DAO treasuries with powerful asset management features:
- Rebalancing (maintaining asset weights, native token buybacks, or sales into stablecoins)
- Trade quotes/routing
- Trade splitting across multiple exchanges
- TWAP orders
- Passive Yield (stETH rewards, basis trading yield, intrinsic productivity)
- Leverage/Shorting
- Treasury accounting
Looking to utilize Set Protocol for your own treasury needs? Want to request a new treasury management feature? Let us know!
Anyone can become a social trader by using our protocol to build a unique portfolio, and socialize their portfolio through Discord, Telegram, Twitter etc. Fans of the trader can copy the portfolio by simply entering the Set! As distribution scales, social trading opens up monetization and contribution opportunities for influencers/creators.
As a Manager, there are currently no recurring fees imposed by Set Protocol. If interacting with the TokenSets dapp the only platform-level fee is a 0.10% transaction fee on trades executed through the Trade Module.
As an Investor, ignoring the standard blockchain network fees, you may encounter a 'streaming fee' on structured products, which is 100% awarded to the Manager as a method of monetization.
The streaming fees are fees that are paid out to Set managers over time are based on the entire market cap of the Set (e.g. 2% of market cap over 1 year). This incentivizes managers to increase the value of their Sets over time for their users.
The streaming fee is calculated linearly over the lifespan of the Set. For example, if a Set has a 2% streaming fee and 6 months has passed, 1% of streaming fees can be collected.
Last modified 5mo ago