Midas.Investments is happy to announce the release of a new CeDeFi strategy, which comes in addition to the three CeDeFi strategies released last month. Similar to its predecessors, the latest CeDeFi strategy is aimed to create new investment opportunities for Midas users.
The Midas team seeks to create profitable investment tools for users by developing novel strategies that could sustainably deliver passive returns. As part of this quest, our investment department has recently unveiled CeDeFi strategies, which represent the next pivotal step in Midas’ development. These strategies can prove to be exceptionally lucrative as they seek to combine CeFi’s reliability with DeFi’s high profitability.
In order to further simplify the process for users, Midas’ innovative CeDeFi investment strategies have incorporated automated algorithms and are built with smart contract functionality. The new CeDeFi strategy offers up to a 30% ROI.
Note that the projected ROIs are based on current calculations. The Midas investment team does not guarantee any ROI. Users are advised to have an overall grasp of the market conditions because each strategy is suitable for a certain market cycle. The performance of each strategy depends on the market sentiment, pool liquidity, and lending utilization rates. In contrast to our fixed yield products, CeDeFi strategies do not provide yields and an investment into these may result in some degree of loss of your initial investment.
Strategy: “GLP” – Index Liquidity Provision on GMX
DeFi strategy that generates yield in ETH by providing blue-chip liquidity for leveraged traders on GMX, a decentralized perpetual exchange. Users supply liquidity into an index called GLP and earn fees generated from traders’ liquidations, swaps as well as gain from trader losses.
Target ROI: ~27%
GLP is an investment product very similar to our YAPs. Ninety-eight percent (98%) of the GLP index is composed of BTC, ETH, and stablecoins (FRAX, USDC, DAI, USDT). Historically, stablecoins have accounted for around 40-45% of the index while BTC and ETH have rounded out the remaining 50-55% of the index (in roughly equal proportions). Therefore, by buying GLP shares for stables, users will effectively enter a soft long position on ETH (~0.25x) and BTC (~0.25x).
This strategy is an excellent, reasonably low-risk way to receive exposure to ETH and BTC along with a significant and sustainable ETH yield (~30%). GLP will be a particularly high performer during choppy markets when traders are most likely to lose money. Moreover, during periods of high volatility, the GLP TVL could grow due to traders’ negative PnL which results in an unbound upside potential.
How to Invest in CeDeFi Strategies
Users simply need to purchase the tokens that represent these strategies in order to invest in any of the CeDeFi strategies. Furthermore, users can seamlessly swap into and out of all positions at any time with any supported asset, which allows them to rebalance their portfolio based on their investment preferences. Investors may track the full allocation and health of the position through the on-chain monitoring tools for full transparency of strategy performance.
Midas uses portfolio monitoring tools to make up for any shortcomings of the strategies, but the platform does not accept responsibility for malicious events impacting protocols or inefficiency of the strategy itself. In short, investment responsibility ultimately falls to the individual, and it is advised that investors do their own research before engaging in these strategies.