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CeDeFi Strategies
Financial Disclaimer:
The information provided here does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat the description below.

DeFi strategy which generates yield (target 45% ROI) through ETH-USDC liquidity pool and price appreciation of ETH (a +10% price increase in ETH results in +7.9% strategy growth) as borrowed USDC is converted to ETH, which is why this strategy is referred to as a “soft long.”

Similar to YAPs, an investment in this strategy will be composed of “shares”. Half of the USDC pool is converted to ETH and then provided as supply tokens to Alpha Homora (a DeFi protocol that leverages liquidity pools). These supply tokens are used as collateral for creating a 2x leveraged position on a basket of ETH-USDC liquidity pool. The price dynamics of ETH are reflected in the strategy: on average, a 10% increase in the price of ETH results in a 7.9% growth of a strategy's price due to the conversion of USDC to ETH, making its price less volatile while capturing 45% ROI from fees and rewards. This strategy is an excellent way to diversify a portfolio during choppy, bearish markets while maintaining exposure for the start of a potential rally in the crypto markets.

[Fees from ETH-USDC liquidity pool (~13% ROI) + trading fees from Uniswap (~10% ROI)] * 2 (Alpha Homora leverage) - borrow APR for leverage (0.8%) = approximately 45% ROI.

Coins and tokens: ETH, USDC
Protocols: Alpha Homora as LP leverage, Iron Bank as the lending service under the hood of Alpha Homora.

  • Efficiency. High yields combined with a long position on ETH lead to high efficiency during flat and bullish markets.
  • Liquid. Enter and exit the strategy at any time (with low fees).
  • Transparency. Track strategy performance via on-chain analytics and understand where yields are deriving (link).

  • Limited Availability. Investors always have the ability to exit their position in this strategy, however, the availability of this position/strategy is calculated based on the liquidity within the strategy. In order to increase liquidity (and open up availability to additional investments), Midas must add more balances to the strategy, which we plan to do regularly. Please reach out to support if you’re looking to gain exposure into this strategy.
  • DeFi Protocol Risk. Midas builds strategies on top of fully audited protocols that have proven their sustainability, however, protocol vulnerabilities still exist. While Midas monitors all positions 24/7, systematic DeFi risk is shared with investors.
  • Market Downtrend. A decline in the price of ETH will contribute toward price depreciation in the strategy.

  • Utilize this strategy during flat markets to capture an attractive 40% ROI while maintaining exposure to ETH.
  • Combine it with Midas’ “Soft Short” strategy in different proportions to balance between longing, shorting or neutral market position.
  • Combine it with Midas’ fixed yield products (holding BTC or ETH) to reduce the risks presented by market volatility, while increasing portfolio yield.
  • Enter this position with stablecoins during market dips to accumulate a medium-risk and high-yield vehicle and rebalance it to stables or BTC/ETH on each market rise.

Liquidation possibilities (Low Risk). The position may be liquidated if ETH’s price decreases by 57% from position entrance due to leverage for liquidity pools with USDC as collateral. The position entry is updated weekly based on strategy demand, therefore, liquidation risk is low. Position health may be tracked on-chain via this link.
Liquidity pools' impermanent loss (Medium Risk). The strategy is based on market-making of ETH-USDS liquidity pool, which are subject to impermanent loss. In this strategy, impermanent loss halved given the presence of USDC collateral. However, if the value of the ETH position were to drop two times in price in a short time span without retracement, simply holding ETH would give you 20% more in USD value. This is the “other side” of 40% ROI that the strategy targets. You can hedge this strategy by going long on ETH in addition to investing in this strategy. This, however, may give investors an overexposure to ETH.
Systematic DeFi risks (Medium Risk). Midas uses real-time alerts to track all of the main metrics of the position's health, such as protocol liquidity, liquidation prices, and lending utilization rates. If one of our alerts is triggered, it may signal potential hacks, protocol vulnerabilities (liquidity issues), or bad health of the position. Midas has the ability to exit any of the strategies into stablecoins at any time should any of those events occur. Midas’ infrastructure and expertise give our investment team the ability to proactively protect investors from these risks.

Performance fee: 15% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week. The user retains the same number of SLETH tokens, but the price of each token is less by the success reward.
If the user exits the investment strategy before the settlement day, then we calculate the difference between the current price and the price of the last settlement period and take 15% of the profit. If there is no profit, then the user does not pay performance fee.
Performance fee = [Current price - last price] * 0.15
Swap fee:
  • From Stables to Strategy — 0% platform fee + ~0.2% market spread
  • From ETH to Strategy — 0.3% platform fee + ~0.2% market spread
  • From BTC to Strategy — 0.3% platform fee + ~0.2% market spread
  • From MIDAS to Strategy — 1.1% platform fee + ~0.2-0.8% market spread
  • From all others to Strategy — 0.2% platform fee + ~0.2-0.8% market spread
Note that 2% (of the 15%) shall be used toward a MIDAS token buyback.

DeFi strategy which generates yield (target 25% ROI) through ETH-USDC liquidity pool and price depreciation of ETH (a -10% decline in the price of ETH price leads to +4% strategy growth) due to ETH being borrowed while half of the position is converted to USDC.

Similar to YAPs, an investment into this strategy will be composed of “shares”. The strategy is denominated in USDC. USDC is deposited on AAVE to borrow ETH, and half of this ETH is sold for stables. The ETH and stables 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-USDC liquidity pool. 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 short ETH while simultaneously profiting from LP rewards on Alpha Homora. The price dynamics of ETH are reflected in the strategy; on average, a 10% decline in the price of ETH leads to a 4% increase in the strategy's price, making its price less volatile (versus strictly holding ETH) while also capturing up to 25% ROI through fees and rewards. This strategy is a great way to hedge your crypto and altcoin portfolio from a potential drawdown in the market, while profiting from yields on Alpha Homora.

[Fees from ETH-USDC liquidity pool (±13% ROI) + trading fees from Uniswap (±10% ROI)] * 1 (Alpha Homora leverage) = 25% ROI

Coins and tokens: ETH, USDC
Protocols: Alpha Homora as LP leverage, Iron Bank as the lending service under the hood of Alpha Homora, AAVE as the lending protocol

  • Efficiency. Medium yields combined with short on ETH leads to high efficiency during flat and bearish markets. Liquid. Enter and exit the strategy at any time (with low fees).
  • Liquid. Enter and exit the strategy at any time (with low fees).
  • Transparency. Track strategy performance via on-chain analytics and understand where yields are deriving (link below).

  • Market Uptrend. An increase in ETH’s price will result in a decline in the strategy's price.
  • DeFi Protocol Risk. Midas builds strategies on top of fully audited protocols that have proven their sustainability, however, protocol vulnerabilities still exist. While Midas monitors all positions 24/7, systematic DeFi risk is shared with investors.
  • Limited Availability. Investors always have the ability to exit their position in this strategy, however, availability of this position/strategy is calculated based on the liquidity within the strategy. In order to increase liquidity (and open up availability to additional investments), Midas must add more balances to the strategy, which we plan to do regularly. Please reach out to support if you’re looking to gain exposure into this strategy.

  • Utilize this strategy during bearish markets to take advantage of ETH price declines.
  • This strategy may be helpful if you have a sizable position in ETH and altcoins and want to balance portfolio risk.
  • Combine this strategy with the “Soft Long” strategy to create a market neutral strategy with a slight exposure on ETH, and earn a targeted 35% ROI on the portfolio.
  • Enter this position on major upward swings in the price of ETH during bearish markets to earn extra yield following ETH retracements.

Price appreciation of ETH (High Risk). Sharp increases to the price of ETH will lead to a decline in the strategy’s performance (and price). Combining this strategy with a long position on ETH may partially offset strategy losses.
Liquidity pools' impermanent loss (Medium Risk). The strategy is based on market-making of ETH-USD liquidity pools, which are subject to impermanent loss. In this case, impermanent loss is generating money if ETH goes down and decreases if ETH goes up due to borrowing of ETH.
Systematic DeFi risks (Medium Risk). Midas uses real-time alerts to track all of the main metrics of the position's health, such as protocol liquidity, liquidation prices, and lending utilization rates. If one of our alerts is triggered, it may signal potential hacks, protocol vulnerabilities (liquidity issues), or bad health of the position. Midas has the ability to exit any of the strategies into stablecoins at any time should any of those events occur. Midas’ infrastructure and expertise gives our investment team the ability to proactively protect investors from these risks.

Performance fee: 20% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week. The user retains the same number of SSETH tokens, but their price is less by the success reward.
If the user exits the investment strategy before the settlement day, then we calculate the difference between the current price and the price of the last settlement period and take 20% of the profit. If there is no profit, then the user does not pay performance fee.
Performance fee = [Current price - last price] * 0.2
Swap fee:
  • From Stables to Strategy — 0% platform fee + ~0.2% market spread
  • From ETH to Strategy — 0.3% platform fee + ~0.2% market spread
  • From BTC to Strategy — 0.3% platform fee + ~0.2% market spread
  • From MIDAS to Strategy — 1.1% platform fee + ~0.2-0.8% market spread
  • From all others to Strategy — 0.2% platform fee + ~0.2-0.8% market spread
Note that 2% (of the 20%) shall be used toward a MIDAS token buyback.

A basket of incentivised liquidity pools representing the most profitable cash-flow models in protocols with DeFi tokens on Convex Finance which may generate up to 35% ROI while investors also benefit from price appreciation of the underlying tokens.

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 pain points of DeFi and includes tokenomics revolving around the protocol's cash flow. The protocols included in the strategy solve 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.

CRV + cvxCRV. Curve is one of the largest automated market maker (“AMM”) protocols with a sophisticated mechanic of locking CRV to receive extra fees from their most used pools. CRV is used as a governance token to allocate CRV emissions for other project pools, required for protocol health. cvxCRV is tokenized, locked CRV from Convex Finance which is used by Convex to offer liquidity to dozens of DeFi protocols. The CRV + cvxCRV liquidity pool is incentivised by Curve and Convex to create liquidity between CRV native token and tokenized, locked CRV with an approximate APR of 25%. This pool is absent of impermanent loss risk and is long on CRV token, which boasts an exciting roadmap of a native stablecoin release in addition to cash flow tokenomics.
CRV + ETH. This pool provides liquidity for ETH and CRV tokens and is incentivised by Curve and Convex, reaching an APR up to 30%. This pool grows in price with the appreciation of ETH and CRV prices.
CVX + ETH. The pool provides liquidity for ETH and CVX tokens. CVX is a governance token of Convex Finance which is used to manage liquidity of Curve pools. CVX is a valuable token for protocols and stablecoins which seeks to bootstrap liquidity on Curve. Some of the major driving forces of CVX are bribes from other protocols. This pool is incentivised by Curve and Convex, reaching an APR up to 40%. This pool grows in price with an appreciation of ETH and CVX prices.
FXS + cvxFXS. This pool provides liquidity for FXS tokens and tokenized, locked FXS on Convex Finance. FXS, the world’s first fractional-algorithmic stablecoin, is the governance token of FRAX protocol; FRAX is an overcollateralized DeFi stablecoin with a flawless performance in terms of peg and and is entrenched with dozens of DeFi protocols. Owning FXS means owning part of the DeFi ecosystem they are building. FRAX DAO holds a major stack of locked CVX and CRV, arranges buybacks, and has fee generation mechanisms that capture the power from their ecosystem into the strength of their governance token. The pool is incentivised by CRV and CVX, with an APR up to 30%. This pool is not subject to impermanent loss.
Silo + FRAX. This pool provides liquidity for Silo token and FRAX stablecoin. Silo is a governance token for its upcoming isolated lending protocol, which aims to create a new level of security for lending markets, positioning it as the “Uniswap for lending.” The market cap of Silo is very low ($7M as of this publishing), and Midas included this pool to share the potential major upside of their innovative approach to lending. The pool is incentivised by CRV and CVX, yielding an APR up to 60%. Midas’ investment team will rebalance these pools based on several dynamic metrics, including available liquidity, price impact, and rewards. Midas constantly evaluates opportunities in DeFi and plans to add more pools to this strategy based on community demand.

The target ROI for this strategy is 40%, but it may vary based on liquidity in the pools and incentivisation of the protocols.
Source of yield: fees, CRV and CVX governance tokens. Rewards are reinvested into the strategy and reflected in the price increase.

Coins: CRV, CVX, ETH, FXS, Silo
Protocols: Convex Finance, Curve

  • One Strategy. A single strategy from which to receive an attractive ROI from the most valuable DeFi projects in the current ecosystem.
  • Rebalancing. Midas rebalances this strategy based on continuous monitoring, adapting it based on various market conditions.
  • Exposure to the upside following price increases of the DeFi tokens.

  • Highly correlated assets. Macro crypto performance will strongly influence the performance of the strategy.
  • DeFi Protocol Risk. Midas builds strategies on top of fully audited protocols that have proven their sustainability, however, protocol vulnerabilities still exist. While Midas monitors all positions 24/7, systematic DeFi risk is shared with investors.
  • Limited Availability. Investors always have the ability to exit their position in this strategy, however, availability of this position/strategy is calculated based on the liquidity within the strategy. In order to increase liquidity (and open up availability to additional investments), Midas must add more balances to the strategy, which we plan to do regularly. Please reach out to support if you’re looking to gain exposure into this strategy.

  • 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 stablecoin position to balance it out.
  • Combine the strategy with the “Soft Short” strategy or ETH shorts to protect from crypto volatility.

Assets are highly correlated to the macro movement of crypto (High Risk). This strategy is a full “long” on crypto and DeFi. Midas asserts that this is a great long-term bet, but it can be highly volatile. You can hedge this risk with the “Soft Short” strategy or net shorts on crypto.
Impermanent loss (Medium Risk). The CRV-ETH, CVX-ETH and Silo-FRAX pools are subject to impermanent loss risk, which means that if one of the tokens performs disproportionately compared to the other, an investor would’ve been better off (profitability wise) by simply holding those tokens. The formula for impermanent loss is a square root between the price change of two assets, which means that for every 100% of price change between two assets, the LP will underperform 10%. CRV and CVX are highly correlated with ETH, therefore, Midas’ investment team does not expect a major impact of impermanent loss.
Systematic DeFi risks (Medium Risk). All pools hosted on Convex Finance have passed an audit ordered by Coinbase and have never been subject to a hack. Midas considers Convex Finance’s security as one of the best in the market. Nevertheless, Midas uses real-time alerts to track all of the main metrics of the position's health, such as protocol liquidity, liquidation prices, and lending utilization rates. If one of our alerts is triggered, it may signal potential hacks, protocol vulnerabilities (liquidity issues), or bad health of the position. Midas has the ability to exit any of the strategies into stablecoins at any time should any of those events occur. Midas’ infrastructure and expertise gives our investment team the ability to proactively protect investors from these risks.Fees

Performance fee: 20% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week. The user retains the same number of DFTF tokens, but their price is less by the success reward.
If the user exits the investment strategy before the settlement day, then we calculate the difference between the current price and the price of the last settlement period and take 20% of the profit. If there is no profit, then the user does not pay performance fee.
Performance fee = [Current price - last price] * 0.2
Swap Fee
  • From Stables to Strategy — 0% platform fee + ~0.2% market spread
  • From ETH to Strategy — 0.3% platform fee + ~0.2% market spread
  • From BTC to Strategy — 0.3% platform fee + ~0.2% market spread
  • From MIDAS to Strategy — 1.4% platform fee + ~0.2-0.8% market spread
  • From all others to Strategy — 0.2% platform fee + ~0.2-0.8% market spread
Note that 2% (of the 20%) shall be used toward a MIDAS token buyback.
Disclaimer: 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.

DeFi strategy that generates 20-30% APR (in ETH) by providing blue-chip liquidity for leveraged traders on GMX, a decentralized perpetual exchange. Users supply liquidity into an index called GLP and earn fees generated from traders’ liquidations, swaps as well as gain from trader losses.

GLP is an investment product very similar to our YAPs. Ninety-eight percent (98%) of the GLP index is composed of BTC, ETH, and stablecoins (FRAX, USDC, DAI, USDT). Historically, stablecoins have accounted for around 40-45% of the index while BTC and ETH have rounded out the remaining 50-55% of the index (in roughly equal proportions). Therefore, by buying GLP shares for stables, users will effectively enter a soft long position on ETH (~0.25x) and BTC (~0.25x). On top of this, investors will be eligible for ETH-denominated yield derived from activities performed by traders on GMX (more on these in the next section).
This strategy is an excellent, reasonably low-risk way to receive exposure to ETH and BTC along with a significant and sustainable ETH yield (~30%). GLP will be a particularly high performer during choppy markets when traders are most likely to lose money. Moreover, during periods of high volatility, the GLP TVL could grow due to traders’ negative PnL which results in an unbound upside potential.

GLP’s source of yield is %100 sustainable. Rewards come from two sources:
  1. 1.
    Fees paid by traders (~20% of the yield comes from this source) for: swapping assets using GLP liquidity, opening and closing their leveraged positions on GMX, liquidations on GMX.
  2. 2.
    Traders’ losses: When traders lose money by misjudging the market, their net losses are GLP’s net profits. GLP is effectively the counterparty for traders; this yield source accounts for around 85% of the GLP yield.
Target ROI: ~27%

Tokens: GLP (index token), ETH (reward token)
Protocols: GMX

High and fully sustainable yield: 100% of the 30+% annual yield received by GLP holders is denominated in ETH.
Exposure to ETH and BTC growth: GLP is a soft long for both these tokens when users enter GLP with USDC and soft-short when users enter the position with BTC or ETH. In other words, due to the index composition (50% USDC), when one enters the index for BTC or ETH, one will automatically obtain exposure (unwanted or not) to USDC (hence the name “soft short”). Similarly, due to the index composition (25% ETH, 25% BTC), when investors enter GLP via USDC (or any other stable), they receive a 25% exposure to ETH and a 25% exposure to BTC.
Reasonably low risk: historical trader performance on GMX indicates that traders incur losses, which results in gains for GLP holders. For example, over the past year, GLP’s net earnings due to traders’ net losses have amounted to $36M. Unlimited capacity: GLP pool on Arbitrum is around $279M in TVL.

Exposure to other assets: GLP is not the same as a single-sided liquidity provision due to its index nature. When depositing their token of choice, investors will inevitably gain exposure to other tokens in the index. If one of the tokens in the index loses its value, all else held equal, GLP will lose value too.
Liquidity provisioning in GLP is not delta neutral: trader profits will incur net losses on the GLP index resulting in the potential loss of funds for investors.

  • Utilize the strategy during volatile markets to best capture ROI. Volatile markets tend to produce situations where traders lose their money by entering directional positions. Remember that traders’ losses result in GLP profits.
  • Combine with Midas’s soft short strategy (SSETH) to create a delta-neutral strategy for ETH.
  • Combine this strategy with Midas fixed yield products to increase the risk and reward ratio of your portfolio.

Long bull or bear market trends (low-risk): this will result in net losses for GLP (due to a higher probability of trader profits). The best way to hedge this risk is by entering directional positions (e.g., soft-long or soft-short on the Midas platform). The key thing to remember is that this risk is very low, as traders, on average, tend to yield losses in any market conditions.
Exposure to BTC and ETH (medium-risk): for investors swapping into GLP with stablecoins . This is only a risk for users looking to short these two assets or remain delta-neutral. To hedge this risk, we suggest users use our soft-short strategy (SSETH). This will hedge the risk for ETH. Unfortunately, for BTC, users will have to short it on an external platform to mitigate this risk.
Shorting BTC and ETH risk - for investors purchasing GLP with BTC or ETH (medium-risk). To hedge this risk, an investor could open a long position by buying spot BTC and/or ETH and staking them on Midas’ platform.

Performance fee: 10% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week.
Swap fee:
  • From Stables to Strategy — 0% platform fee + ~0.2% market spread
  • From ETH to Strategy — 0.3% platform fee + ~0.2% market spread
  • From BTC to Strategy — 0.3% platform fee + ~0.2% market spread
  • From MIDAS to Strategy — 0.3% platform fee + ~0.2-0.8% market spread
  • From all others to Strategy — 0.3% platform fee + ~0.2-0.8% market spread
Note that 2% (of the 10%) will be used toward a MIDAS token buyback.
Maximum capacity: $10,000,000
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“Soft Long” on ETH
Full Description
Estimated returns and sources of yield
Underlying coins and protocols
Strategy pros
Strategy cons
Investment tips on how to blend this strategy into your portfolio
Risks and ways to hedge against presented risks
Fees
“Soft Short” on ETH
Full description
Estimated returns and source of yield
Underlying coins and protocols
Strategy pros
Strategy cons
Investment tips on how to blend this strategy into your portfolio
Risks and ways to hedge against presented risks
Fees
DeFi Token Farming
Full description
Liquidity pools and our rationale for selecting each one
Estimated returns and source of yield
Underlying coins and protocols
Strategy pros
Strategy cons
Investment tips on how to blend this strategy into your portfolio
Risks and ways to hedge against presented risks
Fees
“GLP” - Index Liquidity Provision on GMX
Full description
Estimated returns and sources of yield
Underlying tokens and protocols:
Strategy pros
Strategy cons
Tips on how to integrate GLP into your portfolio
Risks and ways to hedge against presented risks
Fees