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.

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What are Hub Assets?

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.

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Deposit Flow

The deposit process involves cross-chain coordination between branch chains and the Mitosis Chain:

1

User Deposits Assets

User deposits 1 ETH into the Mitosis Vault on a branch chain, where it’s securely stored

2

Cross-Chain Messaging

Deposit information is relayed to the Asset Manager on Mitosis Chain via cross-chain messaging

3

Hub Asset Minting

Asset Manager mints 1 ETH (hub asset) to the user on the Mitosis Chain

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Deposit Characteristics

  • Immediate Processing: Deposits are processed as soon as cross-chain message is relayed
  • Secure Storage: Original assets remain locked in branch chain vaults
  • Proportional Minting: Hub assets are minted 1:1 with deposited assets

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Withdrawal Flow

The withdrawal process reverses the deposit flow:

1

Withdrawal Request

User requests to withdraw 1 ETH from the Asset Manager on Mitosis Chain

2

Hub Asset Burning

Asset Manager burns 1 ETH (hub asset) from the user’s balance

3

Cross-Chain Messaging

Withdrawal information is relayed to the Mitosis Vault via cross-chain messaging

4

Asset Transfer

Mitosis Vault transfers 1 ETH to the user on the specified branch chain

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Withdrawal Considerations

  • Liquidity Checks: Withdrawals only proceed if sufficient liquidity exists on target chain
  • Chain Selection: Users can specify which branch chain to receive their assets
  • Proportional Burning: Hub assets are burned 1:1 with withdrawn assets

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Asset Manager

The Asset Manager serves as the central coordinator for all vault operations and maintains a comprehensive ledger of cross-chain asset states.

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Core Responsibilities

Deposit Coordination

Processes deposit messages and mints corresponding hub assets

Withdrawal Management

Handles withdrawal requests and burns hub assets

Liquidity Tracking

Maintains real-time ledger of liquidity across all branch chains

Cross-Chain Coordination

Manages cross-chain messaging and asset synchronization across branch chains

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Liquidity Management

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