Midas, a custodial investment platform, has announced that it will close down operations due to a $63.3 million deficit in its decentralized finance (DeFi) portfolio.
The company’s DeFi portfolio lost $50 million, or 20% of its $250 million assets under management (AUM), and user withdrawals of more than 60% following the collapses of Terra, FTX and Celsius made it impossible for Midas to sustain its fixed yield model.
Midas’s total liabilities in Bitcoin, Ether, and stablecoins are at $115 million while its current assets are worth around $51.7 million, resulting in a total deficit of $63.3 million.
Despite the closure, Midas’s founder and CEO, Iakov Levin, said that the company is still planning to eventually offer CeDeFi strategies for centralized finance and DeFi users, with a new project that aims to create a “win-win situation” by connecting competing protocols through liquidity.
