Understanding Mitosis Vault’s secure asset storage and hub asset system
The Mitosis Vault securely stores assets deposited by users on the branch chains supported by Mitosis. The representatives of those deposits are then minted as Hub Assets on the Mitosis Chain.
Hub Assets are tokenized representations of assets stored in Mitosis Vaults across various branch chains. When users deposit assets into a Mitosis Vault, equivalent Hub Assets are minted on the Mitosis Chain, providing a unified way to interact with cross-chain assets within the Mitosis ecosystem.
1:1 Backing
Each Hub Asset is fully backed by an underlying asset in Mitosis Vaults with guaranteed 1:1 deposit/withdrawal ratio
ERC20 Standard
Hub Assets follow ERC20 standard and maintain the same symbol as their underlying assets for seamless integration
Secure by Design
Hub assets are never utilized for VLFs unless explicitly supplied by users, ensuring complete user control
Protected Storage
Underlying assets remain safely locked in Mitosis Vault at all times, providing maximum security
Important: Hub assets are never utilized for VLFs (Vault Liquidity Frameworks); their underlying assets remain safely stored in the Mitosis Vault at all times unless users supply the hub assets to VLFs.
The Asset Manager implements sophisticated liquidity management to ensure system stability:
Real-Time Tracking: Continuously monitors liquidity levels on each branch chain
Threshold Management: Each chain has specific liquidity thresholds that must be maintained to prevent excessive concentration of withdrawals on single chains. The thresholds can be adjusted based on network conditions.
Withdrawal Limits: Users can only withdraw if chain liquidity remains above threshold