Introduction To Midas Pools
Midas Capital is a permissionless money market enabling users to create isolated lending and borrowing pools for their assets. Users can create their own pools while modifying pool characteristics, such as oracles, interest rate curves, and collateral factors.
The key advantage of Midas pools is the isolated pool model, where positions in one pool are safe from the position of other pools, even if the assets are the same. This enables users to create money markets according to their own risk appetite.
How does Midas pools work?
With Midas, users can borrow and lend any asset in isolated pools. Users can deposit their assets to earn interest or borrow against their assets in the pool. On the other hand, a pool creator can customize parameters such as collateral factors and its interest rate model.
A collateral factor (Loan To Value Ratio — LTV) helps determine the maximum amount a user can borrow against their collateral. If a user’s borrowed assets exceed the LTV limit of the supplied assets, the position gets liquidated automatically. This can occur when:
- The value of the borrowed asset(s) increases relative to the collateral
- The value of the supplied collateral decreases relative to the value of the borrowed asset(s)
Additionally, users can earn a yield on their supplied assets if the assets can be borrowed from the pool. The interest rate charged to the borrower generates the yield that is provided to the supplier.
Utilization is the ratio of the borrowed asset relative to the amount supplied. For instance, if users borrow 50 BTC out of 100 BTC, utilization will stand at 50%. The interest rate increases proportionally to the utilization rate to prevent situations where high utilization forbids users from exiting supply positions.
Creating a Midas Pool
Midas allows anyone to create a Midas Pool where they will be in charge of which assets are supported, which risk parameters are used, and the fees the user would make from their assets.
Earning yield on Midas
To start, users need to connect a supported wallet and supply assets to the pool to earn interest. Here’s a step-by-step guide on how to supply assets to your chosen pool.
Borrowing assets on Midas
You can also choose to borrow assets in the same pool for which you have supplied assets. Read more on how you can borrow assets from your selected pool.
Withdrawing from Midas
You can re-pay the loan (or return the borrowed asset) by selecting the asset and pressing the re-pay tab. Also, you can choose to remove collateral by removing the token from Fuse Pool.
What Does Midas offer?
Keeping security in mind, the Midas Capital platform was duly audited by Zellic. The audit focused on the Midas contracts, oracle implementations, liquidation strategies for wrapped/deposited tokens, and the custom ERC4626 strategies. Through the audit, Zellic found no critical issues, and all the minor problems flagged have been resolved.
Midas Capital is continually expanding its ecosystem with more chains and pools. Currently, the platform supports the BNB Chain ecosystem, with many more to come. Users can now participate in the Midas Capital isolated pools on the BNB chain.
Users can get started with the BOMB pool and earn a yield on their BOMB assets or borrow from the pool.
About Midas Capital
Midas Capital is bringing isolated and customizable money markets to EVM-compatible blockchains. Enabling users, DAOs, and protocols to create customized and isolated pools for lending and borrowing any asset, Midas is building a cross-chain ecosystem that democratizes money markets. Pool creators have the flexibility to modify pool parameters (interest rate curves, oracles, collateral factors, pool fee, etc.) according to their risk appetite. With isolated pools, Midas offers stellar features for large-scale institutions, protocols, and traditional investors.
