The Set Protocol lets users “create, issue, redeem, and manage portfolios of ERC-20 tokens in a completely trustless way.” Essentially a smart contract, the protocol was created by Set Labs.
The most notable application built on the top of the Set Protocol is TokenSets, a digital asset management platform that lets users easily manage and profit from their digital asset investments.
The platform’s native token SET is an ERC-20 token that represents a portfolio of assets, which could be anything from ERC-20 assets to Bitcoin and stablecoins. “Rebalancing” is an important concept in the SET ecosystem, a term which the team uses to describe the idea of realigning the weighting of a portfolio of assets according to the price changes of the tokens under the portfolio. The automatic rebalancing means users have a much easier time managing their assets, not having to do much other than simply hold the set to receive the benefits of investment.
The Set Protocol has seen two major achievements in 2019: the launch of Ethereum trading strategy bots and the launch of a bug bounty program. The Ethereum trading strategy bots have have technical indicators like trend lines analyses written into the smart contracts, which means it removes the need for humans to examine and understand trading patterns.