The modular era has dramatically simplified the process for developers to construct their own specialized networks. Although this transition has sparked DeFi innovations, efficient capital allocation has become more complex than ever due to the surge of networks and protocols.

Individuals in the DeFi landscape face an overload of choices and a scarcity of clear information. It is infeasible for each participant to keep up with rapidly emerging networks, and moving assets across different networks is costly and cumbersome. Additionally, unclear reward schemes lead to inaccurate decisions, with discrepancies between speculation and actual outcomes resulting in substantial opportunity costs.

Mitosis consists of the Mitosis L1 Ecosystem and Mitosis Vaults on multiple networks. The Mitosis Ecosystem manages the liquidity that flows from different networks through the Mitosis Vaults. Mitosis defines this liquidity as Ecosystem-Owned-Liquidity(EOL), and all participants within the ecosystem can opt to partake in the decision-making process of liquidity allocation. The EOL across multiple networks redefines the DeFi LP experience. Here are a few scenarios to illustrate what Mitosis can do:

  • A lending protocol offers favorable terms to the Mitosis Ecosystem in hopes of receiving a portion of the EOL for its lending pool. With control over the sum of all LPs’ liquidity, the ecosystem gains a greater bargaining power, forcing the lending protocol to propose a more competitive reward scheme.

  • A new DEX protocol wants to utilize Mitosis’ EOL to bootstrap liquidity. The DEX must present a clear and compelling reward scheme to attract the ecosystem. This allows the ecosystem to make an informed decision while DEX benefits by minimizing its dependence on private market makers.

  • An active DeFi participant on Ethereum is aware of the rapid innovations across multiple networks but struggles to keep track of all of them. To stay current and avoid falling behind, the LP decides to deposit into the Mitosis Vault. The LP can tap into benefits from all networks supported by Mitosis simply by depositing to Mitosis on Ethereum.

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