With decentralized finance (DeFi) products on the cusp of mainstream adoption, investors are continuously seeking DeFi protocols that offer higher yields relative to traditional financial (TradFi) products. And while DeFi offers the possibility for investors to earn premium yields, risks remain high, leaving many traditional investors skeptical about joining the DeFi space.
However, the introduction of CeDeFi is changing that narrative. CeDeFi is a hybrid investment model that aims to bridge the gap between the centralized and decentralized finance ecosystems. This concept offers investors the best of both worlds and Midas.Investments is bringing this innovative approach to the masses.
What is Midas.Investments?
Midas.Investments is a leading custodial crypto investment platform offering investors premium yields on their crypto assets, supported by hedged DeFi strategies. Midas’ user-friendly platform has an infrastructure designed with built-in automated tools and strategies. These automated strategies do not require that investors master the nature of trade within the volatile DeFi market. The platform is a yield aggregator that aims to maximize yield for investors by utilizing several strategies across DeFi.
As a CeDeFi platform, Midas combines the mechanisms of centralized finance with algo and DeFi strategies to offer hybrid yield strategies for investors. Midas’ team is supported by over 40 experts, including a veteran DeFi analyst and the former CEO of a major tech company with more than a decade of experience. The team utilizes a combination of market experience and tools founded upon algorithmic infrastructure and 24/7 portfolio management to allow Midas to offer innovative products to its investors and further expand into an evolving and leading CeDeFi platform.
Midas.Investments: Yield Strategies
Midas.Investments’ core mission is to generate hedged yield streams through existing digital strategies for consistent, passive income to its investors.
Fixed Yield Strategies
This is the legacy investment strategy on Midas’ platform. Investors who elect to earn yield from this strategy earn competitive yields on individually staked cryptocurrency assets. Midas offers investors a wide array of different crypto assets to invest in.
The annual percentage yield (APY) on staked Bitcoin ranges from 9.4% to 12.1%, one of the highest amongst custodial staking platforms. The APY on staked Ethereum ranges from 10.6% to 12.8%, while fiat-backed stablecoins like USDC, BUSD, and USDT yield APYs from 14.5% to 17.6%.
Midas generates premium yield in the DeFi market through different models of volatility prediction, correlation, strategies, hedging, and collateral asset models. Strategies for deploying investors’ assets include:
- Concentrated liquidity provider for Uniswap V3
- Yield vaults
- Borrowing for target asset’s collateral to free liquidity
Yield Automated Portfolio (YAP)
The second most popular strategy offered by Midas is the Yield Automated Portfolio (YAP). The two YAPs offered by Midas are built on a collection of crypto assets grouped by their type and performance, similar to exchange-traded funds (ETFs).
As YAPs represent a collection of digital assets, these products diversify risk by giving investors exposure to an assortment of assets without the hassle of purchasing individual crypto assets. Most importantly, YAPs undergo monthly rebalancing to optimize returns at no cost to investors. This rebalancing allows Midas to leverage market swings by securing profits from better-performing assets while reinvesting into the underperforming assets. This is supposed to help sustain long-term portfolio growth.
Midas.Investments offers investors access to two YAPs: Stable and DeFi. The Stable YAP is equally composed of BTC, ETH, USDC, and MIDAS, while the DeFi YAP consists of tokens from eight DeFi protocols.
Complex DeFi Strategies
MIdas’ third investment strategy is a newly-evolving investment concept that will give investors medium-to-higher risk options to further diversify the performance of their investment portfolios.
Midas.Investments: Security and Hedge Mechanisms
Midas’ investment strategies are supported by a vast network of backend processes designed to hedge and protect investment options presented to investors for significant yield opportunities in the volatile crypto market. Midas uses several yield generation protocols, including liquidity providing, loans, multi-protocol strategies, and algorithmic tools as hedging mechanisms.
To protect investors from the extreme risks involved in the DeFi market, Midas’ digital ecosystem is protected through its integration with the highly-secured crypto custody and transfer platform, Fireblocks, where 95% of investor deposits are connected. Fireblocks offers commercial-grade digital security for stored custody assets and helps automate several processes on Midas, such as the YAP monthly rebalancing.
MIDAS Token
MIDAS tokens are the lifeblood of Midas’ platform. This token was designed to provide utility to investors by allowing for additional (or “boosted”) yield on investments. Investors may boost the APY on any asset by electing to receive payouts in MIDAS tokens. This feature may be turned on and off at the investor’s discretion, and MIDAS can be swapped at any time (no hold periods are required).
Beyond this function, MIDAS is also subject to weekly buybacks from the management team, some of which may be allocated to providing liquidity to new or existing liquidity pools to provide strength to markets and open opportunities on new platforms. MIDAS is also provided for opening liquidity on new farming or staking options for users, which increases outside awareness of Midas.
To date, Midas has repurchased more than 64k MIDAS from the open market, while nearly $5 million worth of MIDAS sits as liquidity on decentralized exchanges. MIDAS token is built on the Fantom network with a total supply of 5 million, 2.8 million of which are currently in circulation.
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