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ETH · 1w

How Midas.Investments achieves the highest APY on Ethereum (ETH)?

For almost three years my team and I have been building Midas.Investments to offer simplified passive income streams to retail crypto investors. It was a long road, especially during the bear market. We made a lot of changes, but the core idea of Midas remains untouched: help people to achieve financial freedom through the emerging crypto-economy.

At this stage, we are working on one goal: pivot Midas.Investments to full-scale B2C and B2B crypto asset management platform with the required audits and licenses, so our investors feel secure with Midas platform. Midas is able to build strategies with different risk profiles that achieve one of the best custodial yields on the market. We do this through smart diversification on various DeFi tools, staking and our own algorithmic trading software and methodologies.

In this article, I want to unveil the curtains on how we’re managing Ethereum that is deposited on the platform, so we can provide flexible APY up to 21%.

Our ways to provide yield

Before adding the asset to the platform, our investment/quant department makes research on the ways it can provide yield. There are three main directions we dig (from less risky to riskier): staking (receiving rewards from the blockchain for locking coins), DeFi (which is a rabbit hole with various types of yields, which I will reflect on later on), algorithmic trading (seeing if the asset fits derivative or spot algorithmic trading).

Ethereum is a great example. It has staking, used in almost every top DeFi protocol, and has an amazing derivative trading potential due to high volatility. Therefore, our ETH strategy is divided into conservative staking with 5.4% APY (30-50% of portfolio), DeFi portfolio with 8%-25% APY based on the market interest (30-45% of portfolio), and a derivative trading algorithm with 1x leverage, which showed incredible results of 200% annual ROI over 6 months (10-25% of portfolio). The portfolio allocation is managed by t...

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