TokenSets (Set) is an asset management tool used to manage tradeable ERC-20 portfolios. Set handles user onboarding, sources liquidity from exchanges and issues the tokenized portfolio to users. The Set Manager (Homebrew's Brewmaster) can control whitelisted ERC-20 assets, trade, and manage integrations with other DeFi protocols.

Set Protocol is an Ethereum-based system that enables users to implement an asset management strategy which others can replicate. A strategy consists of a basket of ERC20 tokens encapsulated in a SetToken contract which is itself an ERC20 token. This allows your entire strategy to be replicated and integrated into other protocols such as Uniswap, Compound, Maker, etc.

By supporting external integrations with exchanges, lending platforms, automated market makers and asset protocols, Set enables any type of strategy including those employing DEX trades, yield farming, and margin trading.

The Brewmaster can rebalance the portfolio, while Set Protocol's Software Developer Kit will allow DAO developers to build custom integrations with additional DeFi products as the DAO grows.

TokenSet Developer Docs

The $BREW Set will be deployed with the NAVIssuanceModlue, which "enables issuance and redemption with a single valid ERC20 token or ETH if allowed by the manager. The issuer receives a proportional amount of SetTokens on issuance based on the calculated net asset value of the Set using oracle prices."