πIntroduction to mBASIS
Midas Basis Trading Token (mBASIS) is a permissionless yield-bearing token tracking a delta-neutral basis trading strategy.
mBASIS Design
Basis Trading in Crypto Markets: Basis trading is a common, highly profitable strategy in cryptocurrency markets. It capitalizes on the price differences between spot and futures markets, especially during contango periods, where futures prices exceed spot prices, creating opportunities for arbitrage. This approach has consistently delivered strong returns during bullish market conditions, while not taking directional market exposure
Adaptive strategy: mBasis takes advantage of profitable crypto-basis positions during bull cycles when markets are in contango. 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 Midasβs core product, mTBILL.
Dynamic Allocation: mBASIS actively manages basis positions in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), while also tapping into yield from top altcoins. This diversified approach enhances returns, with market-neutral returns between 20% and 40% historically observed during favorable market conditions.
Institutional Asset Management: The strategy is managed by a licensed institutional asset manager with deep expertise in digital assets. This ensures a high standard of governance, risk management, and operational oversight, providing security and confidence for investors.
π‘Investing in mBasis involves risks such as counterparty risk and execution risks. Please view Risks before investing.
mBASIS Features
Institutional Grade
Top-Tier Asset Management: mBASIS collateral is managed by a leading licensed asset manager specializing in digital assets. With a strong track record in institutional-grade governance, risk management, and operational controls, the licensed asset managers overseeing mBASIS are bound by fiduciary duty agreements, ensuring they always act in the best interest of investors.
Bankruptcy Protection: Investments in mBASIS are structured with a Special Purpose Vehicle (SPV), which legally separates the assets from Midas Protocol Limited. This structure is designed to protect investors by ensuring their assets remain secure and accessible in the event of Midas' default or insolvency.
Transparent Reporting: The mBASIS investment portfolio is regularly updated, with weekly performance published on Midasβs website. The performance of the strategy is established by a regulated fund administrator which ensures that all data remains accurate, providing full transparency to investors.
All-Weather Strategy: While basis trading thrives in bull markets due to positive funding rates, mBASISβs design allows it to adjust seamlessly during bear markets by switching to reverse basis trading or reallocating capital into U.S. Treasuries via mTBILL. This flexibility ensures better results in various market conditions. Investing in mBasis involves risks such as counterparty risk and execution risks. Please view Risks before investing.
DeFi Composability
Permissionless Token: mBASIS is a permissionless ERC-20 token, which is compatible with DeFi use-cases such as borrowing and lending.
Instant Minting: Investors can acquire mBASIS tokens atomically, enabling efficient management of leveraged positions in DeFi.
No Minimums: Investors can acquire mBASIS with any amount, as there is no minimum investment thresholders under the terms of the Prospectus.
Weekly auto-compounding. No need to claim your yield: the price of mBASIS is adjusted weekly to reflect your earned interests. Those interests are reinvested automatically. This means you can use mBASIS as collateral without renouncing its native yield.
Non-Custodial: mBASIS tokens are held in self-custody by investors.
Regulatory Compliance
Midas has received approval for its prospectus, allowing mBASIS to be issued to retail investors within the European Uninion without high minimum investment thresholds. Unlike many tokenized products, mBASIS has no minimum investment requirement, making it accessible to a wide range of investors.
The mBASIS token is fully compliant with European securities regulations, issued as a tokenized debt instrument under German law. Midas adheres to the requirements by the European Prospectus Regulation and complies with Anti-Money Laundering (AML) obligations.
Investing in mBasis involves risks such as counterparty risk and execution risks. Please view Risks before investing.
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