The ultimate guide to help you analyze TokenSets.
|Nov 3||Public post|| 2|
This is a follow-up guide to our Set Protocol tutorial.
DISCLOSURE: As always, this is not investment advice. Please do your own research before investing. I am not affiliated with or compensated by featured products.
'Set it n' forget it' sounds cool but you need to understand fundamental differences between each TokenSet in order to pick one, or a mixture of, TokenSet(s) that might fit your investment goals.
For now, TokenSets website only shows ROI (Return On Investment) comparison between ETH and a specific TokenSet at a time.
Compare performance between different TokenSets in 3 easy steps:
Choose which TokenSets you want to compare and pick a common starting investment date.
It’s important to understand that your ROI will differ based on when you initially invested. Just because the price of one TokenSet is > another TokenSet, or > ETH, doesn’t necessarily mean one is outperforming another. It’s all about timing. So in order to construct a viable performance comparison table, you’ll need to choose the same starting investment date across all compared assets.
Next, look up and note prices from your starting investment date.
Continuing our example, on September 1st:
ETH = $171.42
ETH20SMACO = $265.29
ETH50SMACO = $172.11
ETHMINVOL = $76.92
ETHHIVOL = $108.51
Calculate ROI for each TokenSet + ETH = (Current Price*as of NOV3* - SEPT 1 Price) / SEPT Price. You will be able to view calculated ROIs for all TokenSet on one screen and easily distinguish top performing TokenSets.
ETH +6.74% =($182.98 - $171.42)/$171.42
ETH20SMACO -22.94% =($204.44 - $265.29)/$265.29
ETH50SMACO -23.36% =($131.90 - $172.11)/$172.11
ETHMINVOL +4.17% =($80.13 - $76.92)/$76.92
ETHHIVOL +2.25% =($110.95 - $108.51)/$108.51
Even though ETH20SMACO’s current price is ‘higher’ than both ETH and ETHMINVOL, if you invested on September 1st, it was actually one of the worst performing TokenSets with a -22.94% return. Furthermore, simply holding ETH would’ve been your best bet during this time-frame.
So as you can probably begin to notice, you have to play around with different time-frames and analyze how each TokenSet is performing during various market conditions.
If you want to calculate ROI for a specific time-frame, you will need to follow our guide above and use TokenSets website for price references. For quick comparisons, I set up a page with some pre-set time-frames like 7/30/60 days.
Combining multiple TokenSets, you are able to create a hedged portfolio. Using Zap Generator from DeFiZap, you could see which combinations of TokenSets might fit your needs simply by answering a few multiple choice questions.
It’s been an incredible experience participating in Kyber’s Virtual Hackathon to start building DeFiZap. Our team is spread across 5 cities: Singapore, Mumbai, Pune, Peru, & New York. We all come from various individual backgrounds but ended up working as a team for this hackathon.