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Midas Investments Review: Premium Yielding CeDeFi Strategies

date August 4, 2022 time 6 min read 249 views

Crypto is a market with ever-changing asset prices. Its volatility is the most difficult thing that any investor must keep track of to optimize returns and maximize profit. Acknowledging the market pain point, Midas utilized the novel term of CeDeFi by Binance in 2020 to create a solution. This solution is a tool called Midas Investments that exclusively selects the most outstanding options from DeFi protocols along with the CeFi one. 

Accordingly, Midas Investments has more than 10.000 active investors with more than $200 million in digital asset value on a daily basis. Recently, Midas Investments recently provided their three premium-yielding CeDeFi Strategies to generate the hedged yield for consistent passive income as long as you wish. This article will review about Midas Investment platform including the CeDeFi application, usage and service fee; additionally, the three premium yielding strategies will also be mentioned. 

Midas Investments Review

CeDeFi Definition 

DeFi stands for decentralized finance whose space creates opportunities for normal investors craving to earn yields on their digital assets through cryptocurrencies. Besides creating a high yield by eliminating service fees, quick transfer, and easy accessibility, DeFi also has some major barriers related to high risk on security. While Centralised finance (CeFi) is controlled by the bank and charges a fee for using the service.

Seeing through the pros and cons of both DeFi and CeFi, Binance CEO Changpeng Zhao created a term called “CeDeFi” as a hybrid investment model. CeDeFi connects and fills the gap between centralized and decentralized finance in order to offer the best features from both perspectives. Particularly, this new investment strategy allows users to do many actions on tools with a cheap transaction fee by anyone (businesses or traders) but still ensure the security tokens due to the emerging regulations and compliance issues about cryptocurrencies.

Midas Investments

Founded in 2018, Midas investments is a platform giving investors premium yields on their crypto assets by the DeFi or CeDeFi strategies. This crypto investment platform concentrates on generating passive income on the given core assets, namely BTC, ETH, USDT, and DeFi market. Since Midas investments creates passive income due to the users’ command, it offers various investment strategies that would be mentioned below. 

Up to now, Midas Investments has 91,000+ investors with more than 10,000 active ones. Statistically, it is roughly $193 million in digital asset value on a daily basis. Especially, o investors have so far lost any money on the site, according to the platform, which has confirmed this.

Midas Investment Review and Statistics on P2P Empire.
Midas Investment Review and Statistics on P2P Empire. (Source: P2P Empire)

With returns as high as 29.6% percent, Midas has a history of offering the best rates in the whole crypto lending market. But the effect of the general market such as Bitcoin drop, the rate has also fallen to around 12-19%. Now, you can look at the current interest rate of Midas according to each cryptocurrency.

Midas Investment Fees 

With regards to the Midas investment fee, it does not charge users any fee when they start the deposit funds to their account. Also, if you want to transfer from one Midas account to another one, it would also be free. 

Midas Investment Interest Rate for each cryptocurrency. (Source Hedgewithcrypto.com)

However, the rebalancing enables Midas to take advantage of market fluctuations to keep the sustainability of long-term portfolio growth. The rebalancing fee which can be expensive based on the amount you have in your wallet since it costs totaling 0.8% of your account’s value is deducted automatically each month from your account.

Besides, Midas has charged users a withdrawal fee of approximately 5% when transferring their money into their portfolio. 

Premium Yielding Strategies in Midas Investments

Recently, Midas Investment recently provided their three premium-yielding CeDeFi Strategies to generate the hedged yield for consistent passive income as long as you wish.

Fixed Yield Strategies 

This strategy allows investors, including multiple crypto assets owners, to gain high profit from their stakes. The APY (Annual Percentage Yield) of these following crypto stakes prove high rises in the Midas platform (source: cryptosnewz.com):

  • APY of BTC increases from 9.4% to 12.1% 
  • APY of ETH increases from 10.6% to 12.8%
  • APY of USDC, BUSD, and USDT increases from 14.5% to 17.6%

The stake ranges are generated by the way Midas Defi manages its platform. Therefore, market volatility prediction, correlation, strategies, hedging, and collateralized asset models are put in use to maximize investors’ assets. Most of the strategies to expand investors’ assets include:

  • Provider of concentrated liquidity for Uniswap V3
  • Yield vaults
  • Borrowing to release liquidity as security for the target asset

Yield Automated Portfolio (YAP)

YAP’s basis is similar to exchange-traded funds (ETFs), which helps the trading processes easier. ETFs let the shareholders own a portion of them, and so is YAP. Specifically, investors, or shareholders, won’t meet any problems buying an asset. However, YAP itself would rebalance every month to secure or even deploy the investments. The rebalancing is maintained between profiting from outperforming assets and reinvesting in underperforming assets, this also supports the long-term benefit of being able to sustain. The YAP is available for digital assets and enables you to withstand market volatility while attracting better yields.

Each portfolio is presented by a token, thus, there are two YAPs that investors can access: Stable (SYAP) and DeFi coins (DEFIYAP).  Here is how each portfolio works:

Stable Yield Automated Portfolio (SYAP)

The Stable Yield Automated Portfolio (SYAP) technically uses your money consisting of BTC, ETH, USDC, and MIDAS to invest with an investment rate of 25%. Midas offers full management and automated crypto portfolios to produce a yield that delivers payout and long-term growth potential. With a variety of tokens, users would receive the daily interest payout which represents the mixture of the four mentioned coins and compounds over time.

After one month, the portfolio is automatically rebalanced due to the change in the market, which shows a different percentage of the portfolio. To return to the 25% mix of each token, tokens are bought or sold on a monthly basis. Therefore, if Bitcoin increases in value and makes up more than 25% of the portfolio, some BTC is sold and divided again among the other 3 coins to return to the 25% mix. 

DeFi Yield Automated Portfolio (DEFIYAP)

8 DeFi YAP Protocols in Midas Investment.
8 DeFi YAP Protocols in Midas Investment. (Source: HedgeWithCrypto)

Whereas the Defi one includes tokens from the eight DeFi protocols listed in the above picture, which means each coin accounts for 12.5% of the investment. The interest is earned under the DEFIYAP token daily by each Midas account. 

Complex DeFi Strategies 

The Complex Defi Strategies is still a new concept to investors which gives them options to further diversify portfolio performance. Generally, this new form of investment offers investors various options from medium-to-higher risk to increase the performance of their investment portfolio’s diversification.

The Midas team is on its way to development adding new experienced members in Defi finance, Asset Management, or building Defi. The newly filled positions are additions that Midas hopes will help further grow as an evolving, leading CeDeFi platform.

Security and Hedging Mechanism

Midas claimed that a huge backend process network will help to protect and hedge the investment options which are presented to individuals for yield opportunities. As a result, Defi has become a great choice that expects higher yields than anticipated in traditional finance. 

Several yield generation protocols, including liquidity providing, loans, multi-protocol strategies, and algorithmic tools as a hedging mechanism in place, are said to be used by the Defi liquidity provider. The Midas Investments platform aims to implement an innovative grouping of protocols and investment options that resonate with the vision of CeDeFi and come together to present optimized trading and investing model that takes the best part of centralized and decentralized finance

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Trevor Kraus

Trevor Kraus

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