Set Protocol: Bundle Your Tokenized Assets

Episode 17
  • Host

    Zach DeWitt

  • Guests

    Felix Feng

    Set Protocol

  • Date

    January 8, 2019

  • Duration

    32 minutes

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What does it mean to bundle your tokenized assets? And what are the potential benefits?

Felix Feng is the founder and CEO of Set Protocol, a platform to create, manage, and purchase baskets of tokenized assets.

Rather than buying five different tokens and paying a gas fee to purchase those tokens individually, with Set, you can bundle all five of those tokens and buy them in a single order.

Decentralized Finance

Felix is most excited about crypto’s potential to transform the financial services industry, and the possibility of the current financial rails being rebuilt in a decentralized manner.

The cost to build your own financial services company has decreased from millions of dollars to being free to anyone who can code. This is because these primitives and protocols are permissionless and free to use. People can start building using these tools today.

As the world becomes increasingly more digital, creating a new financial tooling set to interact with those assets will be really powerful, and this process can be uniquely enabled by crypto.

Baskets of Tokenized Assets

Anything that can be represented as an ERC20 token can be put into a basket. A Set itself is an ERC20 token, which means it interoperates with the entire Ethereum ecosystem.

Sets are fully collateralized, which means that they’re backed by the underlying components trustlessly in a smart contract. In addition to that, a Set is defined by its components and units.

Felix and the Set team believe this is going to unlock many different types of Sets that will be created in the future. Anything that anyone can imagine can be combined essentially, because they’re democratizing the ability to put together these bundles, which was originally only enabled and allowed by traditional financial institutions.

Set Protocol Now and in the Future

Currently the easiest way to get a hold of a Set is on an exchange like Radar Relay, but they also have a consumer-facing application called TokenSets, on which you can explore the current existing Sets.

The team will be launching a new version of the protocol in early 2019, and in conjunction with that launch, they will be launching an updated TokenSets, in which users can define and create their own sets, issue sets, and do some other advanced functionality as well, though it is designed to be friendly for non-technical users as well.

Key takeaways:

  • Felix is most interested in crypto’s potential to transform the financial services industry;
  • Set is an important layer in the decentralized financial stack, along with other protocols like 0X, Dharma, Compound, and dYdX;
  • Set is going after the $4 trillion currently invested in ETFs by allowing tokenized assets to be bundled in creative ways.

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