“We have built a protocol that provides a service that is regulatorily accessible to everyone in the world … and we’re offering products that we’ve never, ever seen before. Automating technical analysis strategies isn’t something we’ve seen — even in the centralized world. It’s something we’ve never seen in the decentralized world. I think that’s a really huge value proposition, to be able to bring that to market and to show something new to the world that actually generates value.”
Felix Feng is the CEO and Inje Yeo is the CPO of Set Protocol, the first functional asset-management protocol on the Ethereum blockchain. The team’s ultimate goal lies in bringing wealth-creation tools to a global user base. Today, Felix and Inje join us to discuss the flexibility of the Set architecture to add functionality over time and explain how the protocol allows users to source liquidity from any decentralized exchange.
They also offer insight around their new product, TokenSets, sharing the particulars of its range-bound and buy-and-hold strategies and describing their intent to leverage community feedback to introduce additional rebalancing tactics. Listen in for Felix and Inje’s thoughts on tackling the oracle problem to enhance the protocol’s extensibility, the regulatory implications of introducing active management strategies, and differentiating Set from its competitors by way of access and innovation!
Today’s Topics
[0:33] How Felix got into crypto and when he came up with the idea for a tokenized index fund
[4:21] Inje’s introduction to crypto and how he connected with Felix to start the Set team
[6:44] A high-level overview of Set Protocol and how it has evolved
[8:49] The flexibility of the Set Protocol architecture to add functionality over time
[12:40] Why Set is designed as an open, permissionless protocol
[14:29] The costs associated with creating on Set and how the team is thinking about generating revenue in the future
[18:32] How Set’s functionality allows users to source liquidity from any decentralized exchange + the fundamentals of the rebalancing process
[22:23] Why the team is creating a business on top of the protocol via TokenSets and how they think about the possibility of alienating the developer community
[30:57] The particulars of the TokenSets range-bound and buy-and-hold strategies
[33:22] How the Set team thinks about leveraging community feedback to introduce additional rebalancing strategies and expand beyond price to include moving averages and volume
[39:50] The technical hurdles Set faces around liquidity and regulatory implications
[44:11] Felix’s take on who is responsible for bootstrapping liquidity
[46:09] The considerations around bringing active management to Set and the regulatory implications thereof
[50:10] How Set’s smart contract strategies are done deterministically through data
[50:59] Why Set is beginning with long-term strategies requiring fewer rebalances
[53:05] How access and innovation differentiate Set from its competitors
[56:01] Set’s go-to-market strategy in focusing on TokenSets and opening its developer library
[59:11] The immediate revenue opportunity Set sees in rebalancing
[1:01:01] The possibility for Set to design its own token
[1:03:53] The Set team’s current concerns around gaining traction
[1:05:16] Set’s current open positions in marketing, user education + software engineering
Connect with Felix & Inje
Set, Set on Telegram, Set on GitHub, Set on Medium, Set on Twitter, Felix on Twitter, Inje on Twitter
Email hello@setprotocol.com
Connect with Thomas & Michael
Thomas on Twitter, Michael on Twitter
Resources
Charlie Lee, Paul Veradittakit, Pantera Capital, 21, ConsenSys Academy, ETHWaterloo, Purse, Andrew Lee, Joseph Lubin, Dharma, Compound, Kyber, 0x, dYdX, Bancor, Uniswap, Maker, TokenSets, EthTrader, UMA. Marble, BlackRock, Vanguard, Melonport, Registered Investment Advisers, Polychain, MetaStable, Bitwise, Bskt, Hummingbot
