In DeFi, fund management does not require an investment manager. We can choose the asset management strategy that best suits our financial needs. Decentralized fund management also reduces service fees. In addition, Dapp has automatic trading algorithms without our own operation. Next, by introducing the TokenSets ("pass collection") platform, we will learn more about how fund management operates in a decentralized ledger.
More blockchain technology and application classification:
Blockchain applicationBlockchain development
Ethernet Square | Fabric | BCOS | cryptography | consensus algorithm | bitcoin | Other chain
Token Economy | Traditional Financial Scenarios | Decentralized Finance | Anti-counterfeiting Traceability | Data Sharing | Trusted Deposit
Decentralized finance:
- A preliminary exploration of MakerDAO
- Introduction to Decentralized Lending Compound Project
- Synthetix, a decentralized derivatives protocol
- Decentralized fund management TokenSets
- Decentralized Lottery PoolTogether
- Decentralized payment and Sablier
- Uniswap of Decentralized Exchange (DEX)
- DYdX of Decentralized Exchange (DEX)
- Decentralized Insurance Nexus Mutual
concept
TokenSets is a trading platform through which users purchase tokens (collections) with strategic functions. These tokens have an automatic asset management strategy that can manage our digital currency portfolio without manual trading. Using automated trading strategies, there is no need to monitor the market around the clock, thereby reducing the trading risks caused by missed opportunities and emotional factors.
Token collection type
Each set is composed of a basket of ERC20 standard digital currency tokens, which will automatically control the amount of open positions according to the strategy we choose. In other words, the set (SET) essentially implements the digital currency trading strategy in the form of a token. There are currently two types of token collections, robot collections and social trading collections.
Robo Sets
Robot collection is an algorithmic trading strategy that can buy and sell tokens according to the rules predefined in smart contracts. There are currently four main algorithm strategies:
- Buy and hold: This strategy adjusts the portfolio's objectives to prevent any one token from being exposed to excessive risks and spreading the risk to other tokens.
- Trend trading: This strategy focuses on technical analysis indicators and converts the target asset into stable currency according to the implemented strategy.
- Scope limitation: This strategy automatically trades within a limited scope and is only suitable for bear or neutral markets.
- Reverse trading: This strategy is suitable for those who use "short" benchmarks. Traders can buy when they think the benchmark needs to be revised.
Social Trading Sets
The social trading collection allows users to follow the top trading strategies of some well-known traders on the token collection. By purchasing this collection of social transactions, we can automatically copy the transactions performed by these featured traders. The social trading collection is also algorithm-based, but it is not developed by the token collection team (such as those in the robot collection), but written by well-known traders.
Note: The collection is essentially a tokenization of a trading strategy. If you want to try any selected trading strategy or follow in the footsteps of professional traders, aggregation may be the easiest way.
Original Link: Decentralized Fund Management TokenSets