Investment Strategy

mBASIS investment strategy breakdown

Understanding the mBASIS Investment Strategy

The mBASIS product utilizes a basis trading strategy to generate yield by capitalizing on the funding rate of perpetual futures contracts and the variations in the basis spread between spot and perpetual futures markets. Our institutional-grade asset managers carefully identify and allocate capital to these trades, ensuring that investors are shielded from the price volatility typically associated with cryptocurrencies such as BTC or ETH.

During declining markets, the strategy adjusts to reverse basis trading, taking advantage of backwardation of the yield curve, or allocates into US T-Bills via Midas’s core product, mTBILL.

We call this approach an "Institutional-Grade All-weather Strategy".

Institutional Grade Execution

Our institutional-grade asset managers bring a high level of professionalism and expertise to the execution of the mBASIS strategy. Their approach includes:

• Comprehensive Market Analysis: Continuously assessing market conditions to identify optimal trading opportunities and ensure informed decision-making.

• Robust Risk Management: Implementing advanced margining and risk control measures to protect the portfolio.

• Strategic Capital Allocation: Efficiently distributing capital across various trades to maintain consistent yield generation.

• Technological Integration: Employing advanced trading tools to support precise and efficient trade execution.

This disciplined methodology allows our asset managers to effectively implement the mBASIS strategy, aiming to provide investors with a stable and well-managed investment product that targets steady yields in the dynamic cryptocurrency markets.