Executing the strategy on TokenSets

The whole asset management process including funds depositing/withdrawing, management fees distribution, and strategy execution will be implemented on the TokenSets Platform in the first phase of the Emergence DAO.

TokenSets is a Web3 asset management platform built on the Set Protocol, which allows users and asset managers to create and manage their tokenized strategies by interacting with the underlying smart contracts.

By using TokenSets, the Emergence DAO becomes an on-chain asset manager and gets a Web3 framework where connections and relations occur in a transparent way and the system works for the good of all participants.

Fund allocators have full control of their money and see the strategy performance 24/7. They can deposit/withdraw funds at any time. The asset manager can’t steal or transfer their funds.

The Emergence DAO serves as a Set owner and manages assets from allocators. Set owners can:

• Determine the size of the management fee that goes to DAO Treasury multi-sig wallet (Set owner address);

• Determine a share of the management fee that goes to Cindicator as the facilitator and data provider that the on-chain asset manager uses (Set Methodologist address). Data provider can be deleted or replaced by DAO;

• Perform rebalancing of a Set and assign Set Operators – addresses that are in charge of the operations of a Set;

• Determine a whitelist of assets the operator can trade.

The scheme can be demonstrated as follows:

The initial version of TokenSet issued by Emergence DAO consists of the following assets that are needed to execute Cindicator SuperForecasters Emergence Bitcoin Strategy on the Ethereum Blockchain:

• WBTC;

• USDC.