Midas mM1-USD

Structured Yield Products on Midas mM1-USD

Midas mM1-USD is a tokenized investment product powered by Midas that tracks the performance of the M1 Capital Master USD Fund, which runs a diverse set of market-neutral strategies across the digital assets space.

M1 Capital partnered with Midas and Strata to tokenize and distribute its flagship multi-strategy USD fund in DeFi via risk-tranched products. Strata’s risk-tranching mechanism transforms mM1-USD into two tokenized tranches with clearly structured risk and return profiles.

The one-size-fits-all design of Midas mM1-USD is not ideal for many investors across DeFi and TradFi as different capital allocators have varying risk appetites and return expectations, which a single yield product cannot fully satisfy. With senior and junior tranches, investors can access the same underlying fund with the risk-return profile that suits them, from capital preservation to leveraged upside. At the same time, tranching mM1-USD significantly improves the product’s composability across the broader DeFi ecosystem.

The protocol introduces two liquid and composable tokens built on Midas mHYPER: Strata Senior mM1-USD (srmM1-USD) and Strata Junior mM1-USD (jrmM1-USD).

• srmM1-USD (Senior Tranche): Senior mM1-USD is a liquid, yield-bearing derivative of mM1 that provides low-risk exposure to M1 Capital's flagship market-neutral strategy. It is designed to exhibit no volatility similar to a yield-bearing dollar while protected against any underlying strategy and counterparty risks.

• jrmM1-USD (Junior Tranche): Junior mM1-USD is a liquid, yield-bearing derivative of Midas mM1-USD that provides leveraged upside to the M1 Capital’s market-neutral strategy. In exchange, it absorbs any NAV losses during an epoch and underwrites the underlying strategy and counterparty risks as first-loss capital.

Market Specifications

Underlying Protocol	Midas
Yield Source	mM1-USD
Base Asset	USDC
Benchmark	0%
Performance Fee	7.5%
Senior Redemption Fee	0.05% when coverage is above 120% 0.025% when coverage is 110-120% 0% when coverage is below 110%
Junior Redemption Fee	0.20% when coverage is above 120% 0.10% when coverage is 110-120% 0% when coverage is below 110%
Senior Cooldown Period	None
Junior Cooldown Period	None when coverage is above 120% 14 days when coverage is 110-120% 28 days when coverage is below 110%