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EOL's Value for LPs

Leveling the Playing Field

EOL democratizes liquidity provisioning by offering all participants advantages previously reserved for institutional players:

  • Early access to promising protocols
  • More lucrative reward structures
  • Guaranteed minimum yield The collective nature of EOL mirrors the bargaining power of large institutions, leveraging scale and stability. However, EOL remains open to all: anyone can join by simply depositing assets into Mitosis Vaults, regardless of their size.

Data Driven Decisions

Access to clear, data-driven insights helps LPs make more informed choices about where to allocate their assets. EOL Allocation Governance enables the LPs to make informed decisions with clear reward schemes upfront. The LPs in the ecosystem can use collective intelligence in the process. In the current structure, retail LPs seek out publicly announced opportunities individually to allocate their assets. In the case of EOL, EOL Allocation Governance resembles the dynamics between institutional liquidity and protocols in that protocols approach EOL first with their proposals. The protocols must suggest a clear, competitive reward scheme to gain support from the community. This new dynamic implies several benefits for LPs:

  • Upfront, Clear Reward Scheme: Proposals provide transparent, explicit profit outcomes, simplifying comparisons between reward schemes.
  • Reduced Research Burden: Protocols approach LPs first with their proposals, reducing the burden on individual LPs to keep up with all the news and updates to discover yield opportunities.
  • Leveraging Collective Intelligence: LPs can leverage the community’s diverse knowledge base on different networks and applications.
  • Avoiding Suboptimal Opportunities: It only takes one knowledgeable LP to submit proof (e.g., explanation, statistics, link) to filter out a suboptimal opportunity. All these factors increase the chances for LPs to make accurate decisions, thereby reducing opportunity costs.

Cross-Network Yield Optimization

Mitosis EOL offers unique advantages in multi-network yield optimization:

  • Universal Reward Distribution: Rewards accumulated in any Mitosis Vault are distributed across all Mitosis LPs, regardless of their specific vault deposits. This allows LPs to gain exposure to rewards from all Mitosis-supported networks through a single deposit.
  • Eliminated Bridging Risks: By pooling liquidity across networks, EOL removes the need for individual LPs to bridge assets, thereby eliminating associated risks and costs.
  • Collective Expertise: The shared ownership model of EOL allows LPs to benefit from the diverse knowledge base of the entire LP community. Through Asset Allocation Governance, LPs can leverage each other's expertise across various networks and protocols.
  • Simplified Multi-Network Exposure: LPs can access opportunities across multiple networks without needing in-depth knowledge of each one, lowering the barrier to entry for cross-network yield farming. This approach maximizes yield potential while minimizing individual risk and complexity, making sophisticated multi-network strategies accessible to a broader range of participants.