Set Creation

Learn how to create and manage Sets via TokenSets.com
Step into on-chain asset management

Introduction

One of the beautiful features of TokenSets is the ability to become an on-chain asset manager via a short 3 step creation wizard and one transaction. This frictionless design is what opens the protocol to all participants that want to manage money, whether you are are a institution wanting to offer high AUM prospect structured projects to customers, a project treasury wanting to ensure longevitiy and risk management in a transparent way or even a small group of friends that want to pool their capital and trade together in a completely trustless manner.

Creation Wizard

There are three steps associated with creating a Set, token selection, set metadata & publishing, seen below. In this guide we will go through each step in detail.

Creation Wizard Overview

Step 1. Token Selection

The first step in the process is selecting your starting assets for your Set and their respective allocation. So what assets can you include in your Set? Well here are a few rules to ascertain whether a token is eligible or not, please follow these guidelines:

  • ERC-20 Token

  • Recognised on the CoinGecko Token List

  • Not a token that enforces a transfer fee. This is where upon transaction, a portion of the sent amount of tokens is redirected to another wallet.

  • Must have liquidity against WETH on a DEX such as Uniswap or Sushi

It's worth noting that the vast majority of tokens are eligible to be included within a Set, however, If you are ever unsure on a particular token, please get in touch with the team on Discord and we will be happy to confirm eligibility.

You can search assets you would like to include using the provided search box. In the example below we have included WBTC (Wrapped Bitcoin), WETH (Wrapped ETH) & DPI (DeFi Pulse Index). Once you have the assets you want to include you can then configure the starting allocation of each token using the UI sliders, utilising the lock icons to fix an allocation in place whilst altering others. The max amount of tokens you can include within the starting allocation is 20, though once a Set is deployed you are free to trade the capital freely via the Set contract as if you were trading your personal wallet.

Step 1. Token Selection

Step 2. Set Metadata

The next step on your journey will be personalising your Set with the following information:

Name

The set name should be a memorable way for traders to identify and relate to your product. One strong example of Set naming can be found looking at the DeFi Pulse Index (DPI). The name gives the Investor information on who the creator of the index is (DeFi Pulse), the ecosystem that the index covers (DeFi), and finally, what type of product DPI is (an Index). Try think about the message you convey with your Set name as it will be at the forefront of Investors eyes.

Symbol

The Set symbol is a very important aspect of Set creation, this is the ticker that will follow your Set across the ecosystem, whether it be trading on a DEX or looking at your portfolio on Zerion - the Set symbol is how Investors can identify your product from the rest, just like you would with other ERC-20 tokens.

Start Price

The starting price of your set is an arbitrary number denominated in USD that your Set will start at. Performance of your Set will then be measured in comparison to this baseline figure. For example, if your Set starts at $100 and the assets within your Set (WBTC, WETH & DPI in this case) grow in USD value by 20%, your Set will be valued at $120. Inversely, if your underlying assets lose 20% in USD value, then you Set will be valued at $80.

A common question asked is, does the starting price matter? Not really. The starting price dictates the quantity of each underlying collateral asset is required to issue 1 of your Set token, but it does not impact how an investor interacts with your Set.

Here are some written example of how this looks in practice.

Example 1:

Set Z starting price: $100

Underlying assets: 50% Token X & 50% Token Y

Token X USD value: $200

Token Y USD value: $50

Token X quantity required to mint 1 Set: 0.25

Token Y quantity required to mint 1 Set: 1

Example 2:

Set Z starting price: $200

Underlying assets: 75% Token X & 25% Token Y

Token X USD value: $200

Token Y USD value: $100

Token X quantity required to mint 1 Set: 0.75

Token Y quantity required to mint 1 Set: 0.5

Step 2. Set Metadata

Step 3. Publish

The final step associated with creating your own Set is publishing! Here you can confirm the details such as the Set name, symbol, allocations and start price.

Deploying your Set is an immutable action on the Ethereum blockchain - please ensure the metadata associated with your Set up to this point is exactly how you want it before continuing. This only does not apply to the assets and their allocations as of course they will trade-enabled by the manager after deployment.

After agreeing the Terms of Service, click the Publish button to preview and confirm the ethereum transaction on your wallet of choice (e.g. MetaMask). The operation to deploy a Set is gas intensive and may take a few minutes, though you can monitor and verify the progress of your transaction on Etherscan for peace of mind.

Step 3. Publish

Congratulations if you have made it this far, once deployed your Set is on-chain and you are ready to start your asset management journey in the DeFi landscape. We will cover these specifics of Manager operations on Sets in the next guide, Set Management.