Buy & Sell Sets

Learn how to buy and sell Sets via TokenSets.com

In this guide, we will walk you through the avenues to how to buy and sell Sets as an Investor. It's important to remember that Sets are represented as normal, fully compliant ERC-20 standard tokens which means that ultimately, they have the freedom to be traded in the same manner as other Ethereum based Tokens - only liquidity is the determining factor.

Visual learner? Here is a community guide that goes through the various ways to buy and sell Sets on TokenSets.com

Crypto Kai Community Guide

Via TokenSets

Single Asset Exchange Issuance

To buy a Set via TokenSets you first need to navigate to the particular Sets details page. For the example of the DeFi Pulse Index that would be here. Once you're on the Set details page you then have access to the buy & sell buttons pictured below to show the overlay. The following user journey is for buying a Set, but the exact same UI is used for facilitating selling a Set too via the Sell button.

Set Buy Overlay

From the buy and sell overlay you have presented the option to input how many of a particular Set you would like to purchase, the amount of ETH required to facilitate the transaction, your current ETH balance associated with the wallet you have connected to TokenSets and finally, a button to preview the transaction for your approval.

Filled in Buy Overlay
Transaction Preview

When you are happy with the transaction preview you can click the Submit Buy button which will then, depending on the Wallet provider you are using, ask you to confirm your transaction as seen below. This is the final step of the purchasing process and will now exchange your $ETH for the quoted amount of $DPI, all verifiable on-chain.

MetaMask Transaction

What's happening under the covers here? Well, as Sets are 100% collateralised by their underlying assets, when you buy a Set you are sending your ETH to a smart contract that creates exchange orders for all the underlying assets required to mint the Set token and send it back to you. In the case of buying $DPI, you send your $ETH, the contract then buys the underlying DeFi tokens to mint $DPI tokens relative to the amount of ETH you paid and sends them to your wallet.

Via DEX

Sets are fully compliant with the ERC-20 token standard, therefore they can be listed and traded easily on decentralised exchanges if liquidity permits. As market-making/liquidity-providing is a capital intensive task, this is predominately seen for the largest initiatives built on top of the protocol, such as the DeFi Pulse Index, Metaverse Index and the ETH 2x Flexible Leverage Index.

In this example, we'll be using Uniswap to purchase the DeFi Pulse Index, which has ample liquidity outside of TokenSets, though to clarify, anywhere ERC-20 token liquidity is supported, so are Sets!

  • Navigate to the Set details page and scroll to the key information (https://www.tokensets.com/portfolio/dpi in this case). When navigated, click on the Copy Address text. This will copy the Sets contract address to your clipboard for later.

Set Key Information
Uniswap Exchange Interface
  • Click 'Select a token' on the interface and paste in the Set contract we copied earlier. This is telling Uniswap what token we want to exchange our ETH for and in this case, it's the DeFi Pulse Index.

Token Selector Interface
  • Click the token that appears from the pasted contract address and fill in the subsequent interface of how many you would like to buy. In this case, we are buying 1 DeFi Pulse Index Set for 0.19656 ETH. Once happy, click the Swap button to proceed.

Filled In Exchange Interface
  • View the transaction preview to confirm the details of the swap and then press the Confirm Swap button to proceed with the transaction.

Uniswap Transaction Preview
  • Follow the instructions on your connected wallet to confirm your transaction and complete your swap! In this example, we are using MetaMask to confirm our swap transaction.

Wallet Transaction Confirmation

Via Ecosystem

Various projects within the Ethereum ecosystem have integrated Set support with more continuously coming. This is because Sets are simply ERC-20 tokens and therefore share the exact same properties and the ease of integrating as other Ethereum based tokens. Here are some examples of ecosystem projects that have connected with the protocol.