How Does Midas Investments DeFi Token Farming Works?

How Does Midas Investments DeFi Token Farming Works?

What is Midas Investments?

Midas Investments is a custodial investment and CeDeFi platform which provides passive income opportunities to its users by letting them or even you, earn interest over your crypto.

What is CeDeFi? When you combine CeFi (Centralized Finance) with DeFi (Decentralized Finance) you get CeDeFi which stands for Centralized Decentralized Finance.

It combines traditional centralized finance services with decentralized applications allowing you to use DEXs, Liquidity aggregators, yield farming, lending protocols with reduced fees.

In this case, what you get with Midas Investments is the ability to combine tools and strategies like these to optimize or get better yields/ returns on your crypto assets.

You as a user only need to deposit funds, click invest and the platform will do the rest of the work for you to give the best returns possible.

What is DeFi Token Farming With the DeFi Token Farming strategy you are investing in a basket of liquidity pools that represent the most profitable protocols with defi tokens on Convex Finance.

You can not only generate up to 35% returns in incentivized rewards from Convex (normal yield + bonus) but also earn from price appreciation of the underlying tokens.

The liquidity pools included on this strategy are selected by midas investments team according to the pain points they address, tokenomics and protocol cashflow.

Having this strategy in your portfolio is like maintaining a long position on the entire DeFi ecosystem.

What pools are being used The pools included on the strategy are: ● CRV + cvxCRV ● CRV + ETH ● CVX + ETH ● FXS + cvxFXS ● Silo + FRAX And you can find them on Convex and Curve finance.

Underlying coins and protocols The underlying assets are: ● CRV ● CVX ● ETH ● FXS ● Silo And the protocols are: ● Convex Finance ● Curve

Estimated Returns and Sources of Yield The target ROI for this strategy is 40%, but it may vary based on liquidity in the pools and incentivisation of the protocols. Right now it is around 20% based on the last month.

The primary source of the yields are Fees, CRV and CVX governance tokens. The rewards are reinvested into the strategy and reflected in the price increase.

DeFi Token Farming Pros & Cons Pros ● Most attractive DeFi ROIs under one strategy ● Auto rebalancing to keep risk levels ● Profit from DeFi Token price increases

Cons ● Influenced by the overall crypto market, so if the top coins go down then it is most likely to go down as well. ● DeFi Protocol vulnerabilities despite not controlled by investors on midas ● You can always exit the strategy, but you can’t enter if its capacity is maxed out

Investment Tips For DeFi Token Farming ● Utilize this strategy in your portfolio if you’re bullish on DeFi adoption. ● Balance this strategy with exposure to ETH, BTC and stablecoins, which will give you a diversified portfolio covering a large portion of the market. ● Combine this strategy with the “Soft Long” strategy to build a portfolio with high ROI potential while also having a stable coin position to balance it out. ● Combine the strategy with the “Soft Short” strategy or ETH shorts to protect from crypto volatility.