The prospect of earning passive income has attracted many investors to the cryptocurrency market. However, the recent liquidity crisis surrounding centralized interest-earning products has caused many investors to rethink their strategies and options.
Midas.Investments is one of the longest-serving platforms helping crypto investors earn passive income on their assets. Surviving yet another market flush and having been on the scene since 2018 makes Midas.Investments a top choice for earning yield on your crypto assets.
This article provides an overview of the Midas.Investments platform and key features such as interest rates, supported assets, and the MIDAS token. Ideally, we also consider the associated risks and why thousands of investors use Midas.Investment.
What is Midas.Investments?
Midas.Investments is a cryptocurrency lending platform bridging the gap between centralized and decentralized finance (DeFi). The platform offers a centralized component for onboarding users and then utilizes deposited funds to earn yield using battle-tested strategies within and outside the DeFi ecosystem.
Midas started as a masternode staking service, allowing users to stake assets to support PoS blockchain networks. The increased demand for further passive income opportunities and the emergence of DeFi led Midas to expand its offering and potentially grow its user base. At the time of writing this article, Midas had around 7,000 customers with $200 million in assets under management.
Midas.Investments Platform Overview
The Midas.Investments portal has a very minimalistic design, with users able to see assets supported on the platform once they log in. The onboarding process is also relatively straightforward since users are not required to provide an email address and password each time. Instead, Google and Discord accounts are used for quick authentication. The traditional KYC process is also required to start earning yield on the platform.
Midas currently supports the following assets:
- Binance Coin (BNB)
- Stablecoins (USDC, USDT, BUSD, DAI)
- Chainlink (LINK)
- Fantom (FTM)
- Avalanche (AVAX)
- Convex (CVX)
- Spookyswap (BOO)
- Tokemak (TOKE)
- Spiritswap (Spirit)
- Midas Token (MIDAS)
Yield Automated Portfolios (YAPs)
In addition to single assets, Midas offers to yield automated portfolios (YAPs). This offering allows users to invest in a basket of assets to hedge volatility and achieve higher yields. Rewards for such portfolios are paid out daily while the Midas.Investments team reassesses and rebalances each YAP product monthly to optimize yield.
The platform’s current suite of YAPs includes:
- DeFi YAP: Tracks a portfolio of DeFi-related tokens currently including ETH, BNB, AVAX, LINK, MIDAS, DAI, and CVX.
- Stable YAP: Tracks BTC, ETH, USDC, and MIDAS
MIDAS TOKEN ($MIDAS) Overview
MIDAS is a native token for the Midas.Investments ecosystem. The cryptocurrency allows users to unlock the highest possible yield on their holdings. For instance, while regular users earn a 9% APY on BTC assets, those who stake the highest amount of MIDAS can earn up to 12.1% APY.
Additionally, MIDAS stakers earn an estimated 27% APY and are exposed to price appreciation through token buybacks. The company spends up to 10% of its total payout on platform earnings to buy back MIDAS. At the time of writing, MIDAS had a $100 million market capitalization.
Midas.Investments Pros and Cons
- Midas.Investments longevity is the strongest proof that the platform has a proven and sustainable business model.
- Investors can earn higher yields by locking in $MIDAS, thus growing their portfolios faster.
- The Midas platform offers a highly intuitive user interface.
- Yields are clearly defined and less subject to drastic changes, as seen with other lenders.
- Like every other centralized platform, using Midas exposes investors to third-party risks. The platform must be trusted to keep delivering on its promise.
- Midas.Investments is yet to release a mobile app version to make usage more convenient.
The past few months have seen the collapse of several centralized lending platforms. On the other hand, Midas.Investments have thrived since 2018 and have become a top option for crypto investors looking to earn a yield on their assets by bridging CEFI and DeFi. The MIDAS token may also be an enticing prospect for investors seeking to diversify their portfolios.