Midas Launches Liquid Yield Tokens Linked to DeFi Funds
Midas has launched Liquid Yield Tokens (LYT) backed by U.S. Treasuries and decentralized finance (DeFi) funds, starting with partnerships with Edge Capital, RE7, and MEV Capital. The protocol received regulatory approval in Liechtenstein for issuing tokens, facilitating access across Germany and Europe.
- Midas addresses the demand for yield-bearing alternatives to stablecoins like USDT and USDC.
- The tokenized T-Bill product was introduced when interest rates were around 5%.
- The cash and carry trade token delivered yields over 20% last year; however, market trends are reversing.
- The new LYT product targets yields up to 20%.
- Tokens can be used as collateral in DeFi platforms, beginning with Euler and Morpho.
Midas aims to provide a straightforward process for issuing and redeeming these tokens, enhancing accessibility for investors.