Multi-Asset Support
Traditionally, Set Protocol has only supported a handful of assets (ETH, WBTC, USDC, DAI and LINK). Soon, the protocol will support a range of different assets including all of your favorite DeFi tokens, additional stablecoins, liquidity provider (LP) tokens, synthetics and eventually the entire universe of crypto assets. As a result tracking a rebalancing index of many tokens is as simple as acquiring a single Set token.
Yield Farming Support
Recently, yield farming has been the hot trend in the DeFi space but the UX, complexity, time, and cost has turned away many potential participants. Portfolios in Set Protocol v2 will be able to support a wide range of yield opportunities across a wide range of protocols, in which users only need to pay Ethereum gas fees when entering or exiting a strategy, leading to dramatically lower Ethereum gas costs.
Over time, we’ll be deploying plenty of exciting yield farming strategies to the TokenSets platform — including strategies designed by the Set Labs team and strategies that the community creates or suggests.
Gas Cost Savings
Fees on Ethereum have been very high for a few months now which has had a large impact on Set in particular as buying or selling a Set tends to be a costly transaction. With the new iteration of Set Protocol, gas costs will be reduced significantly not only for buying/selling a Set, but also for other protocol functions such as rebalances. Note that this will only apply to Sets deployed in the future and is unfortunately not retroactive.
Set Portfolios
Set managers will now have more flexibility with the new Set Portfolios feature. A Set Portfolio is made up of one or more strategies that the manager can trade with. For example, a manager can have an index strategy that consists of 12 assets and trade between those assets in any allocation with high liquidity and low slippage.
Flexible Trade Execution
Set Protocol v2 will add support for a range of trading types that managers can take full advantage of. This includes the ability to trade on any decentralized exchange, running auctions for large trades, synthetics trading with no slippage, and flexibility for margin and perpetual futures trading. This version will enable full flexibility for portfolio owners to choose their preferred method of trade execution.
Enhanced Protocol Integrations
Set Protocol v2 will allow for a number of different integrations with popular DeFi protocols such as Balancer, Curve, Synthetix, AAVE, and Compound. Unlike the current iteration of the protocol, the new version of the protocol will also be able to receive airdrops and liquidity mining rewards from these protocols (BAL, CRV, SNX and COMP). This allows Sets to participate in yield seeking strategies across the entire DeFi spectrum to capitalize on all opportunities.