Midas collaborates with MEV Capital, Edge Capital, and RE7 Capital to launch 'Yield Token'

On February 13th, PANews reported that Dennis Dinkelmeyer, CEO of the tokenization protocol Midas, revealed that Midas is launching Liquidity Yield Tokens (LYTs), a new type of on-chain hedging fund architecture. These products are designed to compete with relatively newer yield-generating tools such as Ethena’s USDe and BlackRock’s BUIDL Token, which Dinkelmeyer referred to as ‘outdated’. Like USDe and BUIDL, each Midas LYT will tokenize specific trading or investment strategies to bring profits to holders. However, unlike these ‘quasi-stablecoins’, LYTs will have a floating reference value. Dinkelmeyer claims that while these ‘synthetic dollars’ may maintain a peg to the dollar like traditional asset-backed stablecoins (including USDT and USDC), they are actually a completely different financial product, more used for investment rather than as a means of payment or trading pair. LYTs address these risks by treating Hedging funds as on-chain Hedging funds and allowing Token value to track their asset performance. The initial batch of Midas LYTs will tokenize the actively managed trading strategies of decentralized finance (DeFi) asset management companies Edge Capital, RE7 Capital, and MEV Capital. Furthermore, the decoupling of on-chain Hedging funds aims to promote investment flexibility and broaden access to a wider range of assets beyond US Treasury bonds. According to the prospectus, all Midas LYTs will share a common liquidity pool, allowing for atomic redemptions at face value. Each LYT is issued as an ERC-20 asset, meaning they will be composable in the Ethereum DeFi space.