Rates Update & Investment Summary: November

We are glad to present you our fifth November Investment Report. The information in this report is stated as of November 30, 2022. In order to effectively navigate the crypto and DeFi spaces, Midas continues to rapidly navigate the market, especially with respect to our investment structure, risk frameworks and investment strategies. Thus, the information in this report may be outdated by the time of its publishing. 

Following a quiet October, November’s crypto market was rocked by the FTX implosion, which claimed several victims, including the users and investors of Blockfi, Genesis, and Gemini’s “earn” programs (to name a few). Once valued at $32 billion, FTX’s collapse took the world by surprise and will soon be a textbook case for a complete lack of corporate governance and control. FTX’s collapse, which rivals Mt. Gox in terms of the scope and severity of industry impact, is expected to set the industry back years as governments continue to meander around proper regulation for crypto products. 

While the full impact and fallout from FTX’s collapse won’t be recognized for months (if not years), Midas will remind all users that its operations have not been materially impacted by FTX. While Midas will recognize a small loss from our Maple investment pool – approximately $70,000 worth of ETH – it remains business as usual for our team. Midas continues to carefully and diligently navigate the ecosystem, exploring new opportunities and building out new products.  

09/12/22 Update: Any references to the 54 ETH loss from Maven 11 is no longer applicable as Midas.Investments was able to fully exit the position and withdraw its full position with zero loss.

One example of this is the recent launch of two new CeDeFi investment strategies which have replaced the Soft Long on ETH (“SLETH”) and Soft Short on ETH (“SSETH”) strategies. Midas has acknowledged that the SSETH did not perform as expected and has compensated users for this underperformance while replacing those strategies with new iterations. We encourage all users to check out the recent blog post here to learn more about these new strategies.   

As a reminder to our community, some of our goals for November 2022 included:

  • expanding our due diligence of the ETH staking market
  • bootstrapping a new model of algorithmic quant risk frameworks
  • building products on top of Uniswap 3
  • developing our partner network across top DeFi protocols 
  • finding ways to increase transparency 

We are happy to report that we’ve made great strides with respect to each of these goals, including the release of Proof of Liquidity, an unparalleled look into the public portion of the portfolio representing more than $90 million of investment positions. Check out our full report for a deep dive into November’s performance!

Sharing our portfolio structure on a regular basis provides insights into how we make investment decisions while also supporting and substantiating how and why we adjust yield rates for fixed yield products which are based on the current market conditions and our risk policy.

On the 10th of December, we plan to adjust the interest rates for Fixed Yield products based on the 2-month average yield performance of the Midas portfolio. For more information, click the button below and read our November Investment Report.

If you have any questions, please join the Midas community in Telegram or Discord. Our admins are always glad to help!

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