Stablecoins were meant to be "safe" and "stable." But legacy models introduced risks - regulatory gaps, misaligned incentives, and hidden fragility.
As demand for yield grew, issuers moved beyond cash reserves, taking on more risk. The result? A system vulnerable to market stress, de-pegs, and liquidity crises.
We’ve seen it happen before:
📉 2022 → Terra collapsed as its peg failed
📉 2023 → USDC, BUSD, and others suffered de-pegs
📉 2024-2025 → RWA-backed stablecoins like USDz and USD0++ faced severe de-pegs, exposing hidden risks
Each time, one thing became clear - stablecoins weren’t as stable as they seemed.
There is a better way.
Instead of relying on fragile $1 pegs, Liquid Yield Tokens (LYT) introduce a floating reference value that adjusts dynamically with the performance of the underlying portfolio.
Powered by Midas’ regulatory-compliant infrastructure, LYT removes the weaknesses of legacy models while unlocking a broader range of collateral.
Stay tuned. February 11.
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❗️ Disclaimer: Midas-issued tokens are not available to US & UK persons and entities, or those from sanctioned jurisdictions. Past performance is no indicator of future returns.
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