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Mitosis Components

Ecosystem-Owned Liquidity: Optimized Multi-Chain Yield​

Liquidity providers (LPs) join the Mitosis Ecosystem by depositing their assets into Mitosis Vaults on various chains. LPs then receive representative assets on the Mitosis Chain. For example, if LPs deposit ETH into a Mitosis Vault on Arbitrum, they receive ETH on the Mitosis Chain as a representation of their deposit.

These LPs can choose to become Ecosystem-Owned Liquidity (EOL) LPs by depositing their representative assets into the EOL Vault on the Mitosis Chain. In return, they receive miAssets, which provide exposure to the yield and risk profile determined by the Mitosis Ecosystem. The ecosystem-owned portion of the Mitosis Vaults liquidity on each chain is allocated to dApps within their respective ecosystems and generates yield for miAsset holders.

miAssets: Capturing Market Sentiment​

Mitosis Vaults allocate EOL based on periodic gauge votes, where miAsset holders determine the distribution ratio of EOL to each dApp. These gauge votes are carried out for each chain and asset combination, with voting power proportional to the number of miAssets held. While direct voting by LPs provides the most straightforward reflection of market sentiment, it’s impractical to expect full participation from all LPs. To address this, Mitosis converts the overall ecosystem’s activity involving miAssets into EOL allocation ratios, effectively crowdsourcing liquidity decisions.

EOL Allocation Governance: Direct Voting and Delegation​

LPs holding miAssets can vote directly on how to allocate liquidity on supported chains. For example, an LP holding 3% of all miweETH can decide how to allocate 3% of the ecosystem-owned weETH in Mitosis Vaults on various chains, regardless of the chain where they initially deposited their assets. LPs can also delegate their voting power to dApps. When LPs deposit their miAssets into dApps, the dApps gain the right to use the voting power of those miAssets. Even so, LPs retain the ability to reclaim and exercise their voting power at any time while maintaining their deposit in the dApps.

dApps’ Network Expansion with miAssets

With the delegated voting power, dApps can enjoy streamlined network expansion in the multi-chain era. For instance, if a dApp like Aave holds 20% of all miweETH, it can utilize this voting power to deposit ecosystem-owned weETH to its new launch on different chains. This initial liquidity allows Aave to offer competitive weETH borrowing rates from day one on a new network. Thus, the voting power of miAssets not only reduces the resources required for liquidity bootstrapping but also secures the upper hand from the start.

Mitosis Ecosystem: A Marketplace for Liquidity

The Mitosis ecosystem functions as a transparent, on-chain marketplace where LPs’ miAsset activities are automatically translated into a multi-chain EOL allocation strategy. Multi-chain dApp builders within Mitosis Ecosystem compete for miAsset deposits, while LPs allocate their miAssets based on factors such as yield potential, security, reputation, and user experience. Due to the voting power of miAssets, their distribution status within Mitosis Ecosystem directly influences the overall EOL allocation across multiple chains. This organic, market-driven approach ensures that EOL allocation reflects the collective sentiment of the ecosystem's participants.