The use of the CeDeFi mechanism brings numerous advantages over traditional financial systems. Currently, CeFi is considered as a safer and more reliable approach when it comes to generating profits in the crypto market. However, several CeFi platforms (especially Celsius) have gone bankrupt in recent times. The main reason for this appears to be a ‘black box’ problem — the inaccessibility of the CeFi funding structure to end users. Such an issue creates uncertainty and makes funds prone to panic, causing multiple withdrawals at the same time. The biggest problem with models similar to Celsius is that, on the one hand, the company provides the lowest possible rates. Simultaneously, she tries to get the most out of the funds by taking certain risks. Overall, the product gives the impression of being safe, but it is an illusion in reality. This highlights the fact that for those projects that have accumulated a lot of money, it is difficult to find an investor to inject millions of dollars with enough liquidity so that they could withdraw as soon as needed. That’s what sank the Celsius ship and others: they didn’t have enough capital to pay for all the looting. This is a big problem for a fixed income product,’ says Iakov ‘Trevor’ Levin, CEO of Midas Investments.
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‘Black box’ issues: What is Midas’ approach and passive income like
Midas is a crypto investment custodial platform launched in 2018 to address ‘black box’ issues by creating a maximum degree of transparency. It uses a so-called ‘glass box’ approach, where users can check the address of CeDeFi strategies via a dedicated link in order to offer complete transparency, not to mention the availability of monthly investment reports. By providing easy access to all products of its investment suite, the platform offers a form of passive and stable crypto income to its investors – which is a fundamental step towards the much-desired financial freedom.
Sustainable Income with Fixed Income
Midas generates great returns in the DeFi market through different volatility prediction models, correlation, hedging strategies and collateral assets. Fixed earnings are one of the most successful strategies on the platform, as well as being an extremely popular feature. It is a system that encompasses DeFi and algorithmic profit generation for both BTC, ETH and stablecoins. Offering the highest returns, fixed yields include 24/7 risk monitoring for all positions, while fees are adjusted based on the pool’s performance over the past two months. As of this writing, APY (annual percentage of earnings) is 7.1% on Bitcoin (8.9% with a boost), 13.1% on USDC/USDT, 8.4% on ETH, and 9.9% on AVAX. The sources of income and the profits made are fully revealed in the monthly investment reports made available by the company.
CeDeFi: Invest in a strategy instead of allocating in specific currencies
CeDeFi is a hybrid model where investors’ capital is not allocated in currencies, but in a transparent strategy. Available from August 2022, Midas’ CeDeFi strategies caught the attention of more than 1,600 users in its first month of operation. They include structured products based on secure DeFi protocols and have on-chain transparency. “Midas’ strategies combine diverse approaches to working with digital assets (such as ETH, CRV, CVX, DAI, USDC, USDT, SUSHI, etc.) and protocols (such as AAVE, Alpha Homora, etc.) affordable and intuitive investment. Adapted to different market conditions, they allow investors to profit even in the bear market”, added Levin. For example, the “Soft Long” option on ETH offers returns through liquidity pools in the ETH-USD pair, enabling portfolio diversification during bear markets, while maintaining a certain exposure for the start of a possible rally in the markets. crypto. The “Soft Short” in ETH can help balance neutral, long or short market positions.
Other products
Additional products from the Midas Investment suite include Automated Yield Portfolios — which are indexed products containing a basket of selected cryptocurrencies and analyzed on a monthly basis with the aim of optimizing profits — in addition to the Swap functionality, whose function is to facilitate the exchange of a active by another. More than $40 million is traded monthly. Flexibility and transparency speak louder. Midas currently manages $280 million in assets under management (AUM) and has over 10,000 investors worldwide.
Updated $MIDAS Token Utilities
The platform has been preparing for the migration of its native token, MIDAS, from the Fantom network to the Ethereum network, which is scheduled for the first half of November 2022. As Levin quotes, ‘such a migration will open up new opportunities for continued development. of the MIDAS token in the DeFi ecosystem, further expanding its use.’ The new $MIDAS token will serve both as a utility token for the Midas platform, being connected with each product, as well as a governance token for future DeFi protocols. It will increase returns on fixed income strategies, while up to 10% of all payments made to users are spent on MIDAS token buybacks to create a balance between token usage and user activity. In addition to partnering with protocols in order to create structured products for its users, Midas intends to establish its own DeFi protocol. With it, token holders will be able to present their partnerships and structured proposals for CeDeFi strategies to be voted on by the community. The performance fees collected in CeDeFi strategies will be used in the purchase of tokens on the market in order to gradually achieve the platform’s long-term vision of making the $MIDAS token deflationary. The current supply of $MIDAS at the time of writing is 3 million. After the migration, new tokens will be issued by staking only, which users can participate in through both centralized and decentralized ways. With this, Midas ensures a sustainable distribution of the token without a significant increase in its supply. Additional details about the $MIDAS token and its uses can be found in Midas’ updated whitepaper, issued in October 2022.
Maximizing Profits with Boost Levels
Another upcoming addition to the Midas ecosystem are Boost Levels, scheduled for release in early November. Its main objective is to provide more robust demands and utilities for the MIDAS token, while generating better opportunities for users to earn greater returns. The best returns on the market will remain accessible to all users. The new increment tiers will reward users who hold $MIDAS with an additional incentive through increments on top of their fixed income products. In the long term, this will connect Midas’ global income generation with the ‘health’ of the token. The structure of Midas’ increment levels will be adaptable and flexible to market conditions and user data, in a way that benefits both the users themselves and the $MIDAS token. As is already happening, the tokens obtained by any users will not have to be submitted to a blocking period, being possible to exchange them at any time. MIDAS tokens held by users will continue to earn their original APY. In conclusion, the chances are high that Midas will become a revolution in the next bull market — being a safer platform and, at the same time, a better alternative for generating income when compared to the traditional CeFi platforms on the market.
Warning: This article is for informational purposes only and does not constitute investment advice or an offer to invest. CriptoFácil is not responsible for any content, products or services mentioned in this article Read also: Top 3 cryptocurrencies memes to add to your portfolio Read also: BC.GAME invests 700 ETH in NFTs for a better metaverse Read also: Allan Barros, founder of Uni-metaverse, announces US$200 million deal and headquarters at Burj Khalifa in Dubai
