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Ecosystem-Owned Liquidity

Bridging Retail and Institutional Liquidity

For LPs: Symmetric Access to Opportunities​

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With EOL, all LPs can opt-in to advantages previously enjoyed by only a few, such as early access, more lucrative rewards, and default minimum yield.

EOL has similar bargaining power to institutional liquidity due to its scale and stability. However, unlike institutional liquidity, anyone can join the collective of LPs to own the liquidity by simply depositing their assets into any of the Mitosis Vaults. This permissionless access allows anyone to benefit from the negotiation power previously reserved for a few.

For Protocols: Reduced Centralization Risk​

While institutional liquidity is solely dependent on the interests of the institution, EOL is managed collectively by LPs with diverse interests. This diversification reduces centralization risk for protocols.

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If the decision to maintain a substantial portion of the liquidity rests with an institution, it poses a centralization risk to the protocol. Additionally, if the protocols allocate a significant proportion of governance tokens to one institution as rewards, the protocol’s governance becomes centralized.

With EOL, extreme cases such as sudden large liquidity withdrawals are less likely to occur because multiple LPs act based on their diverse interests. The distribution of governance tokens among various LPs ensures a decentralized governance process.