The failure of Celsius and FTX resulted in the withdrawal of more than 60% of Midas’ assets under management.
According to a blog post by CEO and founder Iakov “Trevor” Levin, Midas Investments, an investment firm focused on DeFi yields, is shutting down its platform following significant losses in 2022.
Levin stated that the Midas DeFi portfolio lost $50 million, or 20% of its $250 million in assets under management (AUM), this past spring, and that after the collapse of Celsius and FTX, its platform saw over 60% of AUM withdrawn.
“We have made the difficult decision to close the platform based on this situation and current CeFi market conditions,” Levin wrote.
According to Levin, the company will now focus on a new project that “aligns with our vision for” centralized decentralized finance (CeDeFi).
Beginning on Tuesday, Midas disabled deposits, swaps, and withdrawals for a period of time while it made precautions and balance adjustments. It aims to deduct 55% of user balances in bitcoin, ether, and stablecoins, with the difference compensated for in MIDAS tokens, which can be exchanged for tokens in its new project.
“The new project’s goal is to create a win-win situation by connecting competing protocols with liquidity and providing a simplified yield to a variety of DeFi and CeFi audiences,” Levin wrote.
