Skip to main content

Chapter 4 - Use Case Scenarios

Enhanced Bargaining Power​

EOL gives LPs better bargaining power for rewards.

Example: 500 LPs contribute 1,000 weETH to a protocol through the Mitosis Vaults. This large-scale vault negotiates a higher APY of 15% for Mitosis users. In contrast, individual LPs operating outside of Mitosis might only achieve a 5% APY due to their smaller, isolated, positions.

Liquidity Bootstrapping​

dApps can attract liquidity by offering clear reward schemes and reducing reliance on private markets.

Example: A new lending protocol sets an ambitious goal of attracting $1 million in liquidity within its first month, leveraging EOL as a key strategy. To incentivize rapid liquidity accumulation, the protocol offers a significant 4x points boost for EOL participants.

This approach serves multiple purposes:

  • Enables swift fund deployment
  • Reduces reliance on private investments or large-scale seed funding
  • Fosters community alignment by turning participants into stakeholders
  • Provides cost-effective growth through a points-based reward system
  • Promotes sustainable liquidity

Cross-Network Benefits​

The Mitosis ecosystem revolutionizes how liquidity providers interact in the multi-chain world.

Example: An LP deposits $50,000 worth of Ethereum (ETH) into the Mitosis Vault on the Ethereum network. The vault's cross-chain mechanism allows the LP to earn rewards from liquidity pools on Ethereum, Linea, and Mode, achieving a combined APY of 18% without having to move assets across different networks manually.