What is a DynaSet?
A DynaSet is a dynamically managed set of assets. You can think of it somewhat like a basket of tokens. For this example, let's consider a DynaSet composed of USDC and BTC. If the indicators that our trading and AI team have set suggest to them that BTC is showing signs of an uptrend, the trading team ‘DAM’ (Dynamic Asset Manager) of Humans and/or Artificial Intelligences then exchanges USDC for BTC. They then wait for BTC to go up in value, before swapping it back into USDC thereby generating “Alpha”.
The above example is based on what is called a “long only” strategy. DynaSets may be run using multiple types of strategies including “short only”, “long/short”, “neutral” and also variations where our DAM automatically swaps between strategies based on market conditions.