TokenSets (Set Protocol)

TokenSets was an application built on Set Protocol, a system of smart contracts on Ethereum for creating tokens that hold a collection of other tokens. Each Set token, similar to an ERC-20 token, represented a share of an underlying portfolio, so a single purchase could give exposure to a basket of crypto assets. Some Sets followed fixed allocations, while others ran automated strategies, such as moving between ether and a stablecoin when a moving average signalled a trend change, with contracts handling the rebalancing. Managers could also run "social trading" Sets that followers bought into. The platform was one of the early examples of on-chain asset management in DeFi around 2019 and 2020, and its team later changed focus, with Set Protocol's technology used for other index products. Holders faced smart contract risk, strategy losses and fees.