Starting from today every user of Midas platform will have maximum yield for all the assets and no fees for holding coins and YAPs. We decided to take down the need of activating Lock-in. There are four major points that makes it the best strategical decision for Midas growth.
1. The new Midas business model This Fall we found a scalable yield source together with Fline team, which is automated Uniswap 3 Liquidity pool management hedged by options. It can provide up to 35% returns on all assets somewhat consistently. It means that our biggest business opportunity is increasing assets under management. Currently, we have over 35 million dollars on that platform
2. The conversion rate to deposit. We have launched various marketing channels to attract new capital for all our assets. We have found a steady pace of listing valuable coins. We advertise the highest APY, but we did not receive the growth we were expecting to. When we started to analyse the user’s path, we saw that people have no idea how to activate Lock-in. Currently, a new user needs to make 20+ clicks to get the offer he initially came for. It is unacceptable for the platform’s growth.
3. Lock-in mechanism is not about growth, but about restrictions. – We restrict our users by this Lock-in entrance fee. Yes, it means that we earn more in short-term, but long-term it does not help Midas. – All yield mechanics on our back-end are restricted by Lock-in. It makes development much more complex. – Lock-in restricts our positioning with a lot of “but”s. “Yes, we have maximum yield”, “No, you need to pay 3k usd first”.
4. Redefining tokenomics as a flywheel, not as a restriction. Midas and Fline coins will have its swap on November. Which makes it the best time to de-activate Lock-in. The initial utility will be simply staking + Midas buybacks. Buybacks is the easiest thing we can do with the new business model. Currently, we have 35 million dollars in deposits. Taking out Lock-in should triple it amount in a few months combined with new marketing channels and positioning. If we continue to make 10-15% on top of deposited assets, we can have up to 1 million bucks per month invested to the coin or liquidity. A reminder that the current marketcap of Midas coin is 6.7 million dollars. The next step would be the coin inner swap and choosing rewards in Midas coin for extra yield. The actual yield that is swapped on Midas will be sent to liquidity providing, which will build a healthy liquidity on DEXes. The ideal tokenomics should help exponential product growth, and this is the way we will rebuild it. We also have a partnership coming with a few great Fantom folks. This is the reason we launch on Fantom blockchain. Regarding fees. There will be no fees for YAPs and shares yet. But we might introduce some grading system on top of Midas later on. It will go with staking.
Overall, taking out Lock-in makes us the ultimate simple custodial platform with the highest transparent rates. It is the ultimate selling pitch. It increases conversion to the first deposit, helps outer marketing and platform management, while providing space for new utility, which will boost the exponential growth of the platform. Looking forward for all the great stuff we have been working on. The major one will go live next week.