MidasDAO is blazing a trail in the decentralized finance industry. With its concept of “DeFi X”, MidasDAO has created a full-stack finance platform.
MidasDAO is an automated treasury growth protocol based on protocol-owned liquidity. It has a consistent flow of revenue from multiple sources, including yield farming, Metaverse, and a play-to-earn platform that rewards holders.
The protocol’s token is CROWN ($CROWN), the core component of the ecosystem.
“In MidasDAO, a community is formed when everyone bonds (mints) various underlying assets into a common reserve currency. These assets are intelligently allocated to generate a return for stakers, and the participants are protected by the groundbreaking features of Defi X,” says MidasDAO’s website.
This review will look at the protocol, its tokenomics, Throne nodes, the treasury as well as the native token, and the protocol’s key benefits.
The project’s initial capital was funded by the Midas team rather than seeking out seed funding from outside investors.
“Thanks to internal funding, we made certain that the tokens do not reach “partners” at a low cost, and that they remain in the hands of those who believe in the success of this project and will do their best to help Midas succeed,” explains MidasDAO.
The total amount raised equated to $290,000. This was distributed to “bootstrap the liquidity” and to essentially act as the initial treasury backing for $CROWN.
- A treasury deposit of 50,000 MIM was made to warrant backing for the initial $CROWN supply
- A total of 240,000 MIM paired with 12,000 $CROWN was added to liquidity, establishing the initial extrinsic price of 20 MIM per $CROWN with initial liquidity of $480,000.00
CROWN is a decentralized reserve currency. It is based on OlympusDAO’s concepts of bonding and POL. The MidasDAO community will mint the underlying assets into a common reserve currency.
“In accordance with this idea, each CROWN token is backed by a basket of assets (MIM, CROWN-MIM LP, etc.) and other assets acquired during the second stage of project development, giving it an intrinsic value that it cannot fall below,” says MidasDAO’s website.
Midas owns most of its liquidity because of its bond mechanism. The benefits of this are:
- Midas does not have to pay out high farming rewards to incentivize liquidity providers.
- Midas guarantees to the market that liquidity is always there to facilitate sell or buy transactions.
- By being the largest liquidity provider, it earns most of the LP fees which is another source of income for the treasury.
- Throne nodes
Throne nodes are essentially tradable yield-bearing non-fungible tokens (NFTs) that users can buy using the token ‘Throne’.
“By buying and holding the THRONE node NFT, users gain access to a variety of DeFi protocols across many chains (DeFi-as-a-service), in addition to other investments which are actively managed by the Midas team and our experienced advisors.”
This purchase will provide users with a perpetual yield until they decide to resell the NFT on the secondary market.
By making these nodes into sellable NFTs, the nodes are transferrable to other people.
Node costs and tiers
Users need to purchase the nodes with $Throne tokens, which are funneled back into the treasury.
MidasDAO explains that the return on investment (ROI) provided by the node will scale according to its tier. This is proportionate to the invested principal, says the protocol.
Tokens spent by users to purchase nodes will be redistributed as follows:
– 75% will be burned,
– 25% goes to LP.
• Zeus (150 THRONE) — reward: 2.55 THRONE per day (1.7%).
• Athena (100 THRONE) — reward: 1.30 THRONE per day (1.3%).
• Ares (50 THRONE) — reward: 0.50 THRONE per day (1%).
• Apollo (10 THRONE) — reward: 0.085 THRONE per day (0.85%).
• Hermes (2 THRONE) — reward: 0.013 THRONE per day (0.65%).
- Rewards in Throne are static, this means the CROWN value of the rewards increases with every rebase
- The result of this is an increase in the value of future yields, making the node more valuable
- There will be no node supply limit at the launch
- There will be a limit of node supply imposed on each tier on a monthly basis at a later stage
- There will be periodic auctions of “ultra-limited yield-bearing NFTs” where all the money raised will go back into the treasury
Some factors influencing the rewards calculations:
- Number of nodes
- node revenue
- token price
- protocol revenue
To ensure the sustainability of the project, MidasDAO says that the yield may be increased or decreased at a later point in time.
- Multichain farming
MidasDAO has plans to integrate multichain profit-generating strategies.
“Instead of returning reflections to CROWN holders, which was the standard in previous generations of DeFi, we will buy back tokens, and either burn them or add to our liquidity pool. Without anti-inflationary measures, it is impossible to sustain high APYs and rising prices. Our Multi-chain profit-generating strategies protect CROWN against inflation, making it a strictly better protocol than the competition, from the perspective of the inflation-APY ratio.”
The protocol plans to invest in:
- low-risk stablecoin banks
- interest bearings assets
- higher risk investments such as high yield DAOs
The protocol acknowledges that investing in other projects is risky but that the main focus is to not impact the treasury.
“Therefore, we decided to create our own ecosystem around Midas. This ecosystem is tightly related to Multi-chain farming, as owning our own farms will enable profit generation from within our ecosystem. In addition, this elegant solution will create new use cases for CROWN, thus supplying buy pressure and liquidity.”
MidasDAO has released a preliminary roadmap detailing all the exciting future plans that are in the pipeline. The platform is ever-evolving, with the overall goal of making things as user-friendly and rewarding as possible.
Frequently Asked Questions
December 3, 2021.
What is the Midas Kingdom?
This allows members to swap their $CROWN to $THRONE. Community members who stake their THRONE are essentially increasing their rewards.
MidasDAO and the future of DeFi
MidasDAO ecosystem is constantly improving and evolving to make the experience as seamless and user-friendly as possible.
As the platform profits and the treasury grows, more assets will flow back into CROWN and therefore increasing the overall token price.
Midas Throne Nodes are an exciting development as the NFT-based nodes allow for users to resell their nodes, meaning these are transferrable.
MidasDAO was financially backed by its own team, who fully believe in their ideas
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.