Index Shares – Exploring the Possibilities!

One of our investors, whom you can find on Discord under the nickname jbeast100#1470, wrote material that we want to share with you. This is a reflection on the topic of new indexes, we suggest you familiarize yourself with it.

As many of you are aware, last week Midas has released its new MNI “Master Node Index” share! This share card is a weighted portfolio of four Masternode coins, and Bitcoin: Midas, ESBC, Telos, DIVI, and BTC. By investing in the MNI share, investors are purchasing a diversified fund that will be managed and rebalanced by the Midas team, and will pay out weekly dividends in BTC. 

Midas continues to innovate and this new innovation of Index shares is the future for the platform! While the platform will continue to list Masternode coins individually, this is no longer the only means to earning a passive income through crypto. This article is going to discuss some new index ideas as a thought experiment. Let’s have some fun! 

This stands for “Bitcoin/Bitcoin Index”. What’s this? How can there be a share that puts BTC against itself? Easy! Midas offers a 15% BTC share on its platform, which would make up 50% of this index. This share generates a reliable 15% return, providing stable gains. 

The other 50% of the BTC would be invested in the BTC fline trading bot. For those who are unfamiliar, the Fline bot is an automated trade algorithm that operates on the Bitmex exchange. Users can deposit their BTC individually to the Fline bot, but that’s no fun in this experiment. Putting 50% of the BTC from the index into the Fline bot would create opportunities for faster growth than offered by the 15% share. Just like the MNI index, once per month this share would be rebalanced to the 50/50 ratio. This would replenish the Bot’s losses (if any), or secure gains made by the bot into the stable share. 

Who knew that the Federal Bureau of Investigations would be interested in crypto? Just kidding. This FBI would be the “Fline Bot Index”. 

Currently there is only one Fline algorithm available, trading BTC/USD. However, recent announcements show that a BNB/BTC bot is soon to be released – and more are to come after that. The “FBI” share would be an index that is spread across all of the Fline bots, generating income converted to BTC. It would be difficult to calculate the expected ROI for this one, but it can be done! 

This one stands for “Hedged Midas Index”. This share would be split between Midas and the BTC share. The effect of having a “Hedged Midas” share would be a lower percentage ROI, but with the benefit of lower volatility. For example, Midas’ current ROI is 36%. BTC’s ROI is 15%. Assuming a 50/50 split, the HMI ROI would be 25.5% (we will round to 26%). If Midas value were to decline against BTC for a month, the index would be rebalanced, effectively buying the dip on Midas. If Midas value were to rise against BTC, the rebalance would sell off some of the profits. 

This share would also benefit the entire Midas ecosystem in many ways. Investors would be willing to invest in a version of Midas with lower volatility, and this index itself would provide more price stability to Midas in general. 

This one stands for “High Market Cap Index”. Instead of being based on small cap Masternode coins, this index focuses on the low ROI, high cap coins. If it were to be based on current listings, it could be a 33% split between DASH, BTC, and LTC. Assuming a ROI of 7%, 15%, and 10% respectively, this index would provide an ROI of 10.6% (we will round to 11%). 

Don’t forget that the ROI advertised on the share only accounts for the generated rewards. The act of rebalancing the share can result in increased profits, since coins that grow in BTC value would be sold and coins that shrink in BTC value would be bought automatically.

That’s all of the fun for today. If you were to create an index share for the Midas platform, what would it be and what would you call it? 

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The most interesting option will receive an extra $10 in Midas coins!

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