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Midas.Investments Aims To Bridge The Gap With CeDeFi Strategies

Published 27/06/2022, 16:49
© Reuters.  Midas.Investments Aims To Bridge The Gap With CeDeFi Strategies
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Crypto investment platform Midas Investments has reported that it has created an infrastructure that is designed with built-in, automated tools and strategies that don’t require investors to master the nature of trade within the volatile decentralized finance market. Traditional CeFi refers to centralized finance mechanisms such as crypto lending and borrowing, which have been used to generate moderate passive yields for investors from as far back as 2016. Contrary to DeFi, CeFi is different in that security measures are strict and investor activity is closely regulated by measures like KYC/AML. Human involvement is also vital, being pertinent to network processes, as established on original platforms like Crypto.com.

CeDeFi bridges the gap between the centralized and decentralized finance worlds. Midas Investments reports that it is built upon a similar model as CeFi platforms like Nexo and combines it with algo and DeFi strategies together to offer hybrid yields strategies for investors. Decentralized finance is developing rapidly and a growing belief shared by many industry insiders is that centralized finance offers synergistic assistance.

Midas integrates both CeFi and DeFi for innovative investment options An increasing number of traditional finance and banking institutions have looked to interact with both CeFi and DeFi strategies, as cryptocurrency becomes more of a household concept. Many institutional and retail investors alike, look to security as an important factor that strongly influences investment decisions ultimately. Much due to a lack of human oversight into processes, DeFi is difficult to embrace for many because of this desire for heightened security due to the trustless nature of trading and all DeFi network activity.

Alternatively, centralized finance relies upon human involvement to assist in normal network processes. Midas Investments says it takes an innovative and fresh approach by combining CeFi and DeFi techniques, automating investment strategies using a hybrid CeDeFi model. The Midas team of professionals comes into play similar to the model seen in centralized finance.

What Makes Midas Investments Different? The Midas evolving hybrid CeDeFi investment platform is reportedly supported by a team of more than 40 qualified team members to accomplish its core mission, to generate hedged yield streams through existing digital strategies for consistent passive income. The Midas team says it uses a combination of market experience and tools founded upon algorithmic infrastructure and 24/7 portfolio management. Currently, Midas does this through three distinct investment strategies.

Fixed yield strategies are the foremost investment strategy, in which investors earn industry-leading yields on individually staked cryptocurrency assets. APY (Annual Percentage Yield) on staked Bitcoin ranges from 9-12.1%, the highest amongst custodial crypto investments platforms. Ethereum is over 10%, while fiat-backed stablecoins USDC and Tether are over 14% APY. Midas Boost is an extra incentive that reportedly activates higher yields for receiving payouts in $MIDAS, the network coin.

The second popular strategy is a Yield Automated Portfolio or YAP. YAPs are baskets of crypto assets grouped together by type and performance, similar to ETFs in traditional finance. DeFi and Stable YAPs are the two YAPs offered on Midas. Stable YAPs are centered around stablecoins and DeFi YAPs consist of a basket of 8 decentralized finance protocols. YAPs automate a monthly rebalancing to evenly redistribute ROI to maximize yields. The third investment strategy is Complex DeFi Strategies, a newly evolving concept that will give investors medium to higher risk options to further diversify portfolio performance.

The Midas team has also recently grown, adding key members like an experienced DeFi analyst and also an Asset Manager from the traditional finance sector who managed over $2 billion in assets with deep experience in building DeFi, and an ex-CEO of a major IT enterprise with over 15 years of management experience. The newly filled positions are additions that Midas hopes will help further grow as an evolving, leading CeDeFi platform.

How Midas Hedges and Offers Additional Security In addition to the platform function already explained, Midas reports that it has a vast network of backend processes that work to hedge and protect the front-end investment options presented to individuals for significant yield opportunities in a volatile crypto market. DeFi has become of greater interest to investors, many of whom are waiting to enter the space in hopes of common significantly higher yields than anticipated and realized in traditional finance and fully CeFi platforms.

Midas digital ecosystem is reportedly protected by integration with a highly secured Fireblocks crypto custody and transfer platform. FireBlocks offers commercial-grade digital security for stored custody assets. Besides its industry-standard security, the technological infrastructure supporting the FireBlocks platform works to help automate processes, like YAPs monthly rebalancing. FireBlocks assists the treasury of Midas investment strategies with notable boosts in security and efficiency.

As a DeFi liquidity provider, Midas says it uses several yield generation protocols, including liquidity providing, loans, multi-protocol strategies and algorithmic tools as a hedging mechanism in place. Detailed information on exactly how Midas generates yields is available in full at Midas Investments wiki page. 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 to benefit its 10,000 plus active users and $300 million in TVL.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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