Set Protocol wants to introduce yield farming in their automated trading strategies that are offered in the TokenSets platform so let’s learn some more about the platform in our latest cryptocurrency news.
Set Protocol will deploy yield farming strategies that are designed by the Set Labs team and by the community as yield framing took DeFi by storm and traders are investing millions of dollars worth of digital assets into platforms such as this one in exchange for token rewards. These strategies can however take a lot of steps to execute and skyrocket the ETH gas costs which will make it quite expensive for those that invest smaller accounts.
1/ Today, we’re excited to reveal Set V2, a new protocol built to give users and portfolio managers access to all of the exciting opportunities available to them in DeFi!https://t.co/7gCQEpkiuJ pic.twitter.com/K86FIHnnmA
— Set ⚖️ (@SetProtocol) August 5, 2020
While TokenSet has previously supported Compound’s interest-earning cTokens, the users now can benefit from yield farming by earning and distributing governance tokens such as BAL, CRV, COMP, and much more by using different strategies which use underlying Defi protocols. Users will have to pay for Ethereum gas fees when entering the strategy which is needed to reduce the skyrocketing gas costs. The platform also wants to reduce the complexity of these trades which usually require interacting with multiple protocols. Set protocol grew to $24 million in assets locked in smart contracts whereas only a year ago the number was set at $500K according to a blog post issued by the team.
The move is a part of the wider upgrade as Set Protocol’s V2 will introduce support for a bigger array of ERC20 tokens since the only LINK, WBTC and ETH were supported in V1. Set is promising to reduce the gas costs significantly because the V1 averaged anywhere from $15 to $50 to purchase and sell a SET in the current gas climate. V2 aims to increase the flexibility for SET manages to form portfolios including sophisticated investment features such as limit orders, DEX trading, margin trading, and more. Set Protocol will integrate other popular assets offered by Curve, Aave, Synthetix as well as their underlying liquidity mining opportunities.
During this yield farming craziness, the demand for SET tokens and the “Set it and forget it” asset management platform has slumped a little. The upgrades could help boost the platform a little.
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