Overview

Mitosis is an Ecosystem-Owned Liquidity (EOL) layer1 blockchain that facilitates newly created modular blockchains to capture TVL and attract users through the Mitosis governance process.

Efficient capital allocation has become more complex than ever due to the surge of networks and protocols. Liquidity providers (LPs) suffer from an overload of choices and a scarcity of clear information. Prevalence of institutional liquidity allows protocol builders to endure the early launch period but creates an asymmetric playing field. Unclear reward schemes lead to inaccurate decisions and opportunity costs.

EOL, with its scale and stability, empowers the collective of liquidity providers (LPs) with significant bargaining power to obtain clear, compelling reward schemes for asset allocation decisions. All participants in the Mitosis Ecosystem can opt into the decision-making process, allowing LPs to leverage each other’s expertise on networks and protocols. The EOL LPs can gain exposure to reward across all networks supported by Mitosis without moving their assets cross-chain.

EOL is an attempt to empower retail LPs and bridge the gap between different types of LPs. Mitosis seeks to enhance the overall efficiency of the initial liquidity market, benefiting all LPs and providing support for protocol builders.

Here are a few scenarios to illustrate what Mitosis can do with EOL:

• With the scale and stability of the pooled liquidity of all LPs, the ecosystem gains greater bargaining power. This power gives the LPs access to advantages such as early access and better terms of rewards.
• To bootstrap liquidity with EOL, a DEX protocol presents a compelling reward scheme to attract the ecosystem. The clear reward scheme upfront allows the ecosystem to make an informed decision while DEX minimizes its dependence on the private market.
• An active DeFi participant on Ethereum is aware of the rapid innovations across multiple networks but struggles to keep track of them all. The LP deposits into the Mitosis Vault on Ethereum and taps into the benefits of multiple networks.