Over the last few years, the shift in focus from Centralized Finance (CeFi) to Decentralized Finance (DeFi) has undoubtedly attracted increased public interest. DeFi protocols and exchanges have ushered in a transparent, trustless financial revolution on various fronts, including lending and borrowing, derivatives, and insurance. However, the market has identified deficiencies in both the decentralized structure of DeFi and its centralized counterparts as traditional financial institutions search for ways to participate in the evolving industry while carefully navigating around possible pitfalls.
This navigation has led to what Midas.Investments envisions as the most logical solution – “CeDeFi” or centralized decentralized finance. Sound and further development will catalyze achievements in the crypto space by combining the best of both the CeFi and DeFi ecosystems.
Simply put, CeDeFi combines the strengths of “CeFi” and “DeFi” by offering decentralized investment products through a centralized framework. CeDeFi allows for:
- the construction of automated investment yield products gathering protocol fees while managing liquidity
- tokenized long and short positions on lending markets to balance portfolio risks
- providing a transparent source of yield and funds
- a combination of DeFi strategies with algorithmic tools to access lucrative yields not otherwise found in CeFi
- education of risks and the general crypto market to investors
Think DeFi functionality (such as yield farming and exchange) with the flexibility and security of CeFi. This solution not only optimizes the yield farming process but aims to ease those mechanisms across different blockchain networks.
Midas’ Role in the Introduction of CeDeFi
CeDeFi will accelerate public trust in crypto by serving as a bridge for investors to begin exploring opportunities absent of the steep learning curve related to the technical aspects of DeFi. Midas.Investments envisions СeDeFi as algorithmic combinations on top of DeFi, the results of which allow our team to build opportunities for investors well beyond that of traditional СeFi. Our investment team’s vast experience allows us to create unique investment vehicles, built with smart contract functionality, which in turn allow us to offer products with market-leading yields. These innovative and unique investment vehicles will be made available to any investor on Midas’ platform beginning on August 10, 2022.
The approach will mirror DeFi, which creates various smart contracts that manage assets under lending protocols such as borrowing, lending, and soft leverage. However, Midas’ round-the-clock portfolio monitoring tools will overcome shortcomings that otherwise make it unsuitable for traditional investors who do not have access to the necessary tools. These strategies will allow for a substantial inflow of fresh capital into the DeFi space, managed by a professional investment team. In this respect, Midas’ ecosystem has the ability to provide sufficient liquidity, and our approach is to create a transparent portfolio tailored to your risk profile while providing access to a wide variety of hedged instruments from CeFi.
Midas CeDeFi Strategies
Over the past two years, our investment department has been incessantly researching and building various DeFi investment strategies that could sustainably deliver passive returns to all of our investors. Not all of these strategies made it to the finish line as rigorous backtesting performed by our investment team determined many to carry an unacceptable level of risk, and thus, didn’t pass our internal benchmarks. After vetting these strategies, we’re excited to offer multiple strategies, each boasting attractive ROIs while demonstrating resiliency through different market cycles – bullish or bearish. And next week, we will announce our strategies and share the expertise of our investment department.
On August 10, 2022, we will update Midas platform with a new interface and release three CeDeFi investment strategies. Each strategy is described in detail and built for specific market cycles, giving investors the opportunity to choose the strategy closest aligned with their investment philosophies.
We’ve taken an innovative and fresh approach by combining CeFi and DeFi techniques, automating investment strategies using a hybrid CeDeFi model. Midas’ introduction of the CeDeFi model will serve as a bridge between CeFi and DeFi, allowing for account creation and fund management for investors participating in DeFi. Our vision of true CeDeFi lies where efficient strategies meet diversified risk. We plan to revolutionize the yield process for CeFi platforms and democratize the wealth generation of the crypto ecosystem.