The integration is a showcase of the platform’s ongoing commitment to creating infrastructure for financial systems that anyone can access, by ensuring compliance and offering composable yield products.

This also creates a path for further fusions of Liquid Yield Tokens (LYTs) into Etherlink’s ecosystem, offering various use cases that include collateralized lending, risk tranching, and portfolio management. 

Midas’ New Collaboration

According to a press release shared with CryptoPotato, the institutional-grade asset tokenization platform is steadily developing on Etherlink. The focus is on creating secure, transparent, and efficient structures that allow investors to access the performance of select reference strategies through tokenized formats.

After launching mBASIS, the protocol for tracking the performance of crypto funding rates, and mTBILL, which tracks short-term US Treasuries, two new products were introduced: mMEV and mRe7YIELD.

The former follows a yield strategy by MEV Capital, a digital asset manager, and the latter does the same, but for Re7 Capital, an investment firm specializing in DeFi yield and liquid alpha strategies.

At the time of printing, according to information from Midas’ website, the reported Total Value Locked (TVL) is close to $350 million; however, data from DefiLlama paints a different picture, with nearly $190 million.

Etherlink as The Backbone

The L2 blockchain is non-custodial, Ethereum Virtual Machine (EVM)-compatible, built on Tezos Smart Rollups, offering developers favorable conditions in terms of transaction costs and confirmation times.

“Etherlink offers the scalability and composability needed to bring structured, compliant strategies fully on-chain. With mMEV and mRe7YIELD, we’re expanding secure, self-custodied exposure to institutional-grade products.” – Dennis Dinkelmeyer, CEO at Midas

David Relkin, the Head of DeFi at Nomadic Labs, which is the core team behind Tezos, believes this is an essential step toward bringing wholesale finance fully on-chain.

The timing aligns with notable progress achieved by the blockchain, which has grown from $1.45 million on March 1st to over $45 million in TVL as of today, indicated by DefiLlama.

This is just one of the use cases that Etherlink boasts, which also includes gaming & NFTs, cross-chain liquidity through bridges like LayerZero or Bifröst, support for .etherlink domains, and more.