Midas has launched the Liquid Yield Token (LYT), new investment instruments linked to actively managed DeFi funds. This innovation aims to offer competitive yields, expanding opportunities for investors in the decentralized finance landscape.
Let’s see all the details in this article.
Midas introduces the Liquid Yield Token: a new chapter for decentralized finance (DeFi)
Midas, specialized platform in the tokenization of assets, has announced the introduction of Liquid Yield Tokens (LYT), innovative instruments that offer returns based on decentralized finance (DeFi) funds.
This new class of tokens is born from the collaboration with Edge Capital, RE7, and MEV Capital, three prominent entities in the field of active management of digital assets.
The company received, at the end of last year, regulatory approval to issue its main tokens and those linked to US Treasury securities in Liechtenstein, allowing their distribution in Germany and throughout Europe.
Thanks to this authorization, Midas can now expand its offering, responding to the growing demand for tokenized financial instruments.
The interest in the new LYT stems from the need for tools capable of generating more competitive returns compared to the established stablecoin like USDT by Tether and USDC by Circle, which retain the interest accrued from their reserves.
The DeFi has demonstrated its ability to offer superior returns thanks to advanced strategies such as market making and arbitrage.
Midas, with its continuous innovation, aims to provide more efficient and transparent solutions. Its products reflect the changing market conditions and adapt to new opportunities.
For example, the token based on a BlackRock money market fund had been launched when interest rates were around 5%, while DeFi offered lower yields, around 2%.
Now, with the new LYT product, investors can access returns potentially up to 20%, leveraging the advanced investment strategies implemented by expert managers like Edge Capital and RE7 Capital.
Advanced strategies to maximize returns
Dennis Dinkelmeyer, CEO of Midas, emphasized the importance of collaboration with some of the best fund managers in the sector:
“We have formed partnerships with experts in yield, who operate with government bonds, arbitrage strategies, and other methodologies to maximize performance. Our goal is to offer investors innovative and secure tools.”
This new range of products represents an evolution of tokenization, allowing investors to access advanced financial instruments with a single click.
One of the most interesting aspects of Liquid Yield Token is their usability as collateral in established DeFi ecosystems. Initially, LYT can be used on platforms like Euler and Morpho, with future expansion towards other protocols.
This feature makes the new tokens extremely versatile, allowing investors not only to obtain passive returns, but also to leverage them in bull and bear strategies within DeFi.
The future of financial tokenization
The growing adoption of tokenized digital assets demonstrates the strong interest in more accessible and flexible financial instruments.
The mission of Midas is to provide a bridge between the traditional world and decentralized finance, offering reliable and high-potential products.
Thanks to favorable regulation and solid technological infrastructure, Midas positions itself as a key player in the evolution of financial tokenization.
With the launch of the Liquid Yield Token, the company is preparing for a new phase of growth, ready to redefine investment opportunities in the crypto sector.
