As announced earlier, we’re adjusting our interest rates based on the market conditions and the increased amount of capital. During the last 5 months, our AUM grew up by 600% reaching $200 million. Meanwhile, Midas rates were unchanged for over 3 years now.
In order to provide 17% on BTC and 23% on ETH, our portfolio needs to take additional risk positions, which we prefer not to bear for the sake of the whole portfolio. The new rates will give us more space for capital growth, up to $1 billion. If we leave the rates unchanged, it will continue to stack up risk and pressure on the investment team, which will end really bad for all.
- BTC 17% => 13% APY
- ETH 23% => 18% APY
- Stables 19% => 20% APY
- BNB 17% => 11% APY
- CELO 17% => 11.5% APY
- LINK 12% => 9% APY
As you can see, we’ve increased rates for stable coins and FTM, as the next few months will potentially favor USD-valued investments and we see a bright future for Fantom.
We plan to continue iterating with rates, both increasing and decreasing them. The February adjustment of interest rates to the market will be live on 21 of February.
Midas next steps this month after interest rate change:
- Extensive listing of mid-cap DeFi coins and partnerships with their communities. This should give you a lot of opportunities for a high yield on your portfolio based on our expertise to negate the rate decrease for Bitcoin and Ethereum. By making BTC and ETH interest rates less risky, we are introducing riskier assets with much higher upside potential.
- Delisting coins without constant yield infrastructure on DeFi ($ATOM, $UNI, $LTC, and so on). At this stage these coins did not get a lot of attention and did not correspond to the main goal of our business.
- KYC in February (we wanted to adjust rates before KYC, otherwise it would be weird). We’ll make a full announcement about KYC, as soon as we have the exact date. It will answer your questions about privacy, taxes and so on.
- Midas Boost feature that should create a bond mechanism for our liquidity pools, solving the problem of low liquidity.
- Updating DeFi YAP with new coins
- Intense onboarding of the new dev team and a couple of C-levels to make our Spring even more fruitful.