Midas.Investments is thrilled to announce the launch of three brand new CeDeFi investment strategies on Midas’ platform. These new strategies represent the next pivotal step in Midas’ development as we redefine the era of CeDeFi – where the simplicity and security of centralized frameworks fuse with the transparency and premium yield opportunities of the DeFi ecosystem.
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 by our investment team found that many of them did not pass our low-risk threshold but carry medium-risk with high returns. 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.
Midas’ innovative CeDeFi investment strategies are fully automated and built with smart contract functionality, allowing us to offer strategies with up to a 45% ROI.
Note that target ROIs are expectations from Midas’ investment team and are not guaranteed. The cryptocurrency ecosystem is extremely volatile and unregulated. The performance of each strategy depends on the market sentiment, pool liquidity, and lending utilization rates. Unlike our fixed yield products offering, an investment into these CeDeFi strategies may result in some degree of loss of your initial investment.
Strategy #1: “Soft Long on ETH”
DeFi strategy which generates yield through ETH-USD liquidity pools and price appreciation of ETH as borrowed USDC is converted to ETH, which is why this strategy is referred to as a “soft long.”
Target ROI: ~45%
Similar to YAPs, an investment into this strategy will be composed of “shares,” and the value will be stated in USD. Half of the USDC pool is converted to ETH and then provided as supply tokens to Alpha Homora. These supply tokens are used as collateral for creating a 2x leveraged position on a basket of ETH-Stablecoin liquidity pools (ETH-USDC, ETH-USDT, ETH-DAI).
This strategy is an excellent way to diversify a portfolio during choppy, bearish markets while at the same time maintaining exposure for the start of a potential rally in the crypto markets.
Strategy #2: “Soft Short on ETH”
DeFi strategy which generates yield through ETH-USD liquidity pools and price depreciation of ETH due to ETH being borrowed while half of the position is converted to USDC.
Target ROI: ~25%
Similar to YAPs, an investment into this strategy will be composed of “shares,” and the value will be stated in USD. USDC is deposited on AAVE to borrow ETH, and half of this ETH is then sold for stablecoins. The ETH and stablecoins are then provided as supply tokens to Alpha Homora. The supply tokens are used as collateral for creating a 1x leveraged position on the basket of ETH-Stable liquidity pools (ETH-USDC, ETH-USDT, ETH-DAI). The position turns into a “short” based on the difference between the borrowing of ETH and having a ETH-USDC liquidity pool. Therefore, investors are effectively short ETH while simultaneously profiting from LP rewards on Alpha Homora.
This strategy is a great way to hedge your cryptocurrency portfolio from a potential drawdown in the market while profiting from yields on Alpha Homora.
Strategy #3: DeFi Token Farming
A basket of incentivised liquidity pools representing the most profitable cash-flow models in protocols with DeFi tokens on Convex Finance which may generate high ROI while investors also benefit from price appreciation of the underlying tokens.
Target ROI: ~40%
This strategy taps into top-tier liquidity pools in all of DeFi with the most valuable tokens, based on Midas’ investment research. Each token in this strategy aims to address the pain points of DeFi and includes tokenomics revolving around protocol cash flow. The protocols included in the strategy solve the cornerstone problems of DeFi: liquidity and stablecoins. Including this strategy in your portfolio is similar to maintaining a long position on the entire DeFi ecosystem. Each liquidity pool includes incentivised rewards from Convex, which represent the primary source of the strategy’s yield. Liquidity pools are balanced based on available liquidity and market cap.
If investors are bullish on the DeFi market, this strategy is an optimal method of diversifying your portfolio with a premium ROI potential.
Midas users may swap into and out of all positions at any time with any asset supported on Midas platform, allowing you to rebalance your portfolio based on your 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 (links provided for each strategy).
While Midas assumes no responsibility for malicious events impacting protocols or inefficiency of the strategy itself, it is our goal to make investing in these strategies as safe, effective and easy to use as possible. However, investment responsibility ultimately falls to the individual, and it is advised that investors do their own research before engaging in these strategies.
Learn more about Midas’ CeDeFi investments strategies, including the risks associated with each, on our Wiki page. If you have any questions, please join the Midas community on Telegram or Discord. Our team is always glad to help!