- Midas is closing its platform, and users can withdraw their funds or swap tokens on the new platform.
- Platform experienced 60% AUM withdrawal amid the slow crypto market.
- CeDeFi would combine the ease of CeFi and transparency of DeFi.
Yet another victim of the ongoing conditions in the crypto industry surfaces, according to a blog post from founder and CEO Iakov “Trevor” Levin; Midas Investment, a firm focused on DeFi yields, is ceasing their platform owing to serious losses incurred in 2022.
The post clarifies the reasons behind the closure, as the firm’sfirm’s DeFi portfolio lost $50 million last spring, which is 20% of the $250 million Assets Under Management (AUM). The situation worsened post-FTX saga and Celsius collapse, as the platform experienced AUM withdrawal of 60%.
“Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform.” –Trevor.
All hopes are not lost for the company as they are now focusing on new and exciting projects that align with their vision for a revolutionary Centralized Decentralized Finance (CeDeFi). Basically, they wish to bridge the dexterity of Centralized Finance (CeFi) with the transparency of Decentralized Finances. The Wollerau, Switzerland-based company’scompany’s CeDeFi project uses a Centralized interface that could work with several Decentralized Finance protocols. Along with DeFi solutions, the CeDeFi platform mainly supports hundreds of digital assets across multiple blockchains and its assimilation with the TradeFi infrastructure.
The new aim of the company is to focus on new projects that could “align with our vision for CeDeFi.” -Levin.
Midas had disabled swaps and deposits since Tuesday; withdrawals were halted for some time as cautious balance adjustments. Their target is to reduce 55% of the users’ balance held in BTC, ETH and stablecoins, while the adjustments were to be compensated by MIDAS tokens, which can then be swapped in for tokens available in the new project.
Levin further wrote:
“The goal of the new project is to create a win-win situation by connecting competing protocols with liquidity and offering a simplified yield to a range of DeFi and CeFi audiences.”
Effect on the Crypto industry
Currently, the crypto industry is going through a rough phase, with ongoing crypto winter and recent collapses like FTX, Terra ecosystem, BlockFi etc. As a result, all the cryptocurrencies and tokens are trading at the lower end of the spectrum. All these incidents resulted in the trading volumes hitting a lower value, and the trust of the general investor dwindled from the industry.
Every major player is trying everything possible to boost the mood of investors, inviting them to reinvest in the industry and trying to find fresh clients in the process. The step from Midas can be considered revolutionary at the moment as the company is trying to come up with a system that could provide the best of both Centralized Finance (CeFi) and Decentralized Finance (DeFi), and calling the new system Centralized Decentralized Finance (CeDeFi). It is too early to state whether the project will be successful, but let’s keep our fingers crossed that it has the potential to reform the crypto industry.
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