Midas releases 3 investment strategies to cope with bear market

Midas releases 3 investment strategies to cope with bear market

By Daniela Kirova - min read

Custodial CeDeFi service provider Midas.Investments released three new investment strategies today – “Soft Long”, “Soft Short”, and “DeFi token farming.”

Midas combines various approaches to digital asset management to allow investors to make profit consistently irrespective of market conditions.  

CeDeFi: Unlocking the potential of crypto investments

In a nutshell, CeDeFi serves as a gateway between centralized and decentralized finance, combining the former’s reliability with the latter’s high profitability. 

Due to mandatory audits all products and services go through, CeDeFi solutions set high security and transparency standards and reduce the likelihood of fraud. 

Lowering the entry threshold of crypto 

As a forerunner of CeDeFi, Midas.Investments aims to lower the high entry threshold of crypto, allow investors to explore vetted trade opportunities all while enjoying CeDeFi low fees, and overcome DeFi’s steep learning curve. 

The platform users get access to a vast range of crypto-assets, swap features, and investment strategies that let them build a robust yield-generating portfolio. 

Tailored for different market conditions

The strategies should be selected depending on market conditions. “Soft Long” can be used to diversify a portfolio during an instable bear market. It generates yield through ether-US dollar liquidity pools. 

The price of ether increases as borrowed USDC is converted to ETH. The strategy makes it possible to maintain exposure for the beginning of a potential crypto market rally.

A balancing act

“Soft Short” is the opposite, generating yield through borrowing ether and ether price depreciation and exchanging half of the position to USDC. This strategy can be combined with the previous one to help balance shorting, longing, or neutral market position. 

Finally, “DeFi Token Farming” combines a number of liquidity pools of the DeFi tokens on Curve and Convex Finance with the highest yield. The main yield and price increases are generated by farming, with the underlying assets also growing. 

Midas rebalances these pools based on rewards, price impact, the liquidity available, and other dynamic metrics.

Future plans 

All the above strategies allow for mix-and-match with other products of Midas.Investments to reduce the risks presented by market volatility while increasing portfolio yield. 

Investors may track the full allocation and health of the position through the on-chain monitoring tools for full transparency of strategy performance. 

According to Iakov Levin, the platform’s CEO and founder, Midas will roll out more strategies in the upcoming months to achieve higher flexibility and further expand the investor toolkit.