Draught of Midas is an extremely rare, golden liquid. Contact with it will turn any solids or powders material into Gold. It is created by combining Alchemic Precursor with Meat or some already made Draught of Midas.
Due to the rarity of Alchemic Precursor and the difficulty of creating it or finding the recipe in-game, most players are unlikely to have seen either Midas or Precursor in-game without having consulted either a mod or a recipe calculator to determine their game seed's Precursor recipe.
If you pour powders into Midas, it turns the whole powder pile into gold. This is a good way to get more out of a tiny bit of Midas.
No liquids other than Alchemic Precursor are known to react with Draught of Midas; adding Alchemic Precursor will quickly convert it into more Draught of Midas.
Most solids react and turns to gold, Mud does not.
The liquid itself is relatively safe; being submerged will inflict the Drunk stain, just like being soaked in Whiskey, but drinking it gives you 10 seconds of both Food Poisoning, and Poison.