Yield Automated Portfolio
Each YAP is made up of a selection of cryptocurrencies, grouped together and weighted by market capitalization (market cap). The market cap of a cryptocurrency is calculated by multiplying the number of units of a specific coin by its current market value against the US dollar. When a cryptocurrency goes up in value, its market cap will increase and therefore the value of the YAP will rise, and conversely, when cryptocurrency prices fall against the US dollar, the value of the YAP will fall.
There are several benefits to YAP investing, rather than multiple individual cryptocurrencies. Firstly, it can be a more cost-effective way of investing in cryptocurrencies, as it allows you to take a view of the sector as a whole without having to buy each individual coin. Secondly, investing in a YAP can also help to spread some of your risks, as you aren’t being exposed to a single coin.
The Stable YAP includes BTC, ETH, and USDC and has proven to be a more stable portfolio despite adverse market conditions. Every SYAP token in circulation is backed by real assets. Initially Bitcoin, Ethereum, USDC and MIDAS represent an equal 25% share in Stable YAP.
The DeFi YAP includes tokens for some of the most innovative projects in the DeFi space and gives investors the opportunity to optimise returns and long-term asset growth by investing in DeFi. Every DeFi YAP token in circulation is backed by real assets. Initially Bitcoin, Ethereum, USDC and MIDAS represent an equal 12.5% share in DeFi YAP.
The Midas team rebalances each YAP once a month to equalize the allocation based on the market price of each underlying asset. Rebalancing takes profits from assets in the YAP that have outperformed and reinvests these to the underperforming assets to bring your portfolio long term growth.
- DeFi YAP - rebalances 15th of each month
- Stable YAP - rebalances 1st of each month
Let's take DeFi YAP as an example since it has an equal allocation in each coin and it will be easier to illustrate, but it works the same for all YAPs
If you invest $800 in DeFi YAP then behind the scenes your deposit will be split and this amount will be used to buy coins for the portfolio, $100 (1/8 or 12.5%) for each coin in this case. So you will have $100 in each coin. Now let's imagine that one coin doubled in price and the rest stayed exactly in the same place. This would mean that your portfolio is now worth $200+100+100....+100 = $900. This profit will be evenly distributed among the other coins to maintain the same percentage for all coins When the time comes for the next rebalancing, the coins in the portfolio will be adjusted so that their dollar value returns to the original value (12.5%)