2022-11-10 13:32:19
The update on Soft long and Soft short, and CeDeFi strategies
by Midas CEO Iakov «Trevor» LevinThe initial creation of soft long and soft short was targeting the creation of the uncorrelated mechanisms on-top of DeFi to give the ways to profit from both ways of market, both up and down.
My backtests showed that this is a viable strategy. Although, during the last three months Soft long faced an issue with Alpha Homorra liquidity and borrow fees, while Soft short was not so efficient due to IL and lesser leverage, which did not result in the effective hedging. Also, there was an error in price feed calculation, which resulted in this weird graph on 7th of November, although the strategy's price is correct.
On the next week we plan to launch the new Soft Long strategy, which is basically a high yield long-term $ETH position. We were searching for the model that could captivate the long-term exposure on $ETH, while giving the best industry yields, and I feel that we succeeded with that.
Regarding Soft Short, we are doing the calculations and plan to either close the strategy or to change it on something more efficient in terms of hedging.
I understand that the performance of the strategies was far from what we have expected, and we will compensate this mistake before the changes.
Additionally, in our pipeline there are three new CeDeFi strategies:
Algorithmic long and short on $ETH, which is using one of our algorithms to make it a smart holding of $ETH, and $BTC in the future.
The change of Soft Long to High Yield $ETH.
L1 crypto index based on the accurate evaluation metrics to give you exposure on the first layer of crypto innovation.
Two of those strategies will be released by the end of this month, or even sooner.
We have also increased our team in terms of building new CeDeFi strategies, and our goal is to have at least two new strategies released per month. The long-term goal is to give you all the building blocks for constructing your portfolio.
Also, we are working on making your portfolio more flexible and giving some type of market insurance from rapid price movements on $BTC and $ETH.
Thank you for being with us!
PS. Today we will host an interview with GMX team, the creators of GLP pool, which is presented on Midas as CeDeFi strategies. GMX team is doing amazing job of building the innovative decentralised prop exchange, which can replace the niche of their centralised competitors (like FTX). Come join us, it will be fun. Link PPS. Today we got our swap limits triggered during the volatile night, which restricted the possibility to swap $BTC and $ETH to Stables and vice versa. Our operational team is working to update those limits to be sufficient in potential future volatility events.
The withdrawals are working, and we have no intention in closing it down. Stay safe.
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