What is the ETH Range Bound Low Volatility Set?
The ETH Low Volatility Set （ETHLOVOL） is for you if you believe the price of Ether will swing within a smaller range in the medium to long term. This Set automatically rebalances cash (DAI) into ETH if the price of ETH dips more than 30% and ETH into cash (DAI) if the price of ETH rebounds more than 35%. The token tolerances are selected to balance profit against risk, preventing token holders from selling into a rally (or buying into a drop) yet still taking profits when the downside of missing a trade is too high.
What is a Set?
A Set is a digital asset (ERC-20) that represents a fully collateralized portfolio of other assets including Bitcoin (WBTC), Ethereum (WETH), and fiat-pegged coins (DAI). Sets automatically rebalance to make executing any portfolio strategy (e.g. range bound trading) simple by holding a single asset. Using Sets abstracts the need to manually manage multiple assets and rebalance your portfolio.
How do I value a Set?
A Set is 100% collateralized by its underlying components, which means its 'Net Asset Value' (NAV) can be calculated. The NAV of a Set is the sum of the value of each of its underlying components.
Range Bound Strategy: