💡Tired of “frozen” liquidity in DeFi?
With @MitosisOrg VLF, your assets don’t just sit idle — they actively work within strategies while remaining available for other operations.
Programmable liquidity = flexibility + yield + control.
Cross-Chain Deposit into Mitosis Vault (Powered by
@Hyperlane ⏩ )
Let’s break it down with a simple example of how Alice uses Mitosis VLF so her 10 ETH don’t just lie dormant.👇
1/ Step 1: Deposit into Mitosis Vault
What happens:
- Alice has 10 ETH on Ethereum
- She deposits them into a Mitosis Vault on Ethereum
- Receives 10 Hub ETH on the Mitosis Chain (the system’s main blockchain)
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- Alice “transfers” her ETH into the unified Mitosis system
- They become Hub Assets — universal tokens usable across various strategies
2/ Step 2: Participation in a VLF Strategy
What happens:
- Alice sees a VLF Vault with a 15% annual yield (e.g., a lending strategy on Compound)
- She deposits her 10 Hub ETH into this VLF Vault
- Receives 10 VLF tokens (e.g., maETH) representing her share in the strategy
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- Alice “invests” her Hub ETH into a specific yield strategy
- Receives a “receipt” in the form of VLF tokens
3/ Step 3: Strategy in Action (Behind the Scenes)
What happens:
- The strategist (a smart contract manager) pools ETH from Alice and others
- The total pool of 1000 ETH (including Alice’s 10 ETH) is deployed on Compound
- After one month, the strategy earns 50 ETH profit (5% monthly)
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- Alice’s funds work alongside others in a professionally managed strategy
- The strategy generates returns
4/ Step 4: Receiving the Yield
What happens:
- The system settles the profits
- Alice’s share: 10/1000 = 1% of total profit = 0.5 ETH
- Her VLF tokens are now worth 10.5 Hub ETH instead of 10
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- Alice automatically receives her share of profits
- Her tokens increase in value
5/ Step 5: Programmability (Unique Feature)
What can Alice do with VLF tokens:
- Sell on the market: exchange maETH for other tokens without exiting the strategy
- Use as collateral: take out loans against maETH in other protocols
- Split portions: separate principal from earnings for different purposes
- Combine: merge with other VLF tokens to create new strategies
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- Unlike traditional DeFi where funds are locked, Alice’s VLF tokens remain active and usable
6/ Step 6: Withdraw Funds
If Alice wants to cash out:
- She requests to withdraw 10.5 maETH
- Waits for a 7-day safety period
- The strategy reserves 10.5 ETH from its pool
- Alice receives 10.5 Hub ETH
- Exchanges them for 10.5 ETH on any supported blockchain
Key Benefits for Alice:
1. Access to Institutional Opportunities
- Instead of 3–5% in regular DeFi, she earns 15% thanks to collective power
- Access to exclusive strategies unavailable to small investors
2. Security and Transparency
- All operations are cryptographically verified
- Strategist cannot steal funds — only execute pre-approved actions
- Full transparency on profits and losses
3. Flexibility
- Tokens can be used for other purposes without withdrawing from strategy
- Multichain access — withdraw to any supported blockchain
- Participation in governance via voting
4. Automation
- No need to search and manage strategies herself
- Automatic reinvestment of profits
- Professional risk management
How This Differs From Regular DeFi:
Regular DeFi:
- Alice deposits ETH into Compound
- Gets cETH
- Funds locked in protocol
- Yield 3–5% per year
- Can’t use tokens for other operations
- Can’t use as collateral elsewhere
- No access to institutional strategies
Mitosis VLF:
- Alice deposits ETH into Mitosis
- Gets Hub ETH
- Deposits into VLF Vault
- Receives programmable VLF tokens (maETH)
- Tokens stay active: can sell, collateralize, combine
- Yield 15%+ annually
- Access to institutional strategies and opportunities
- Liquidity remains “live” and flexible for any DeFi operation
🔸Regular DeFi: Alice deposits ETH into Compound → gets cETH
→ funds locked in protocol
→ yield 3–5% per year
→❌can’t use tokens for other operations
→❌can’t use as collateral elsewhere
→❌no access to institutional strategies
🔸Mitosis VLF: Alice deposits ETH into Mitosis
→ gets Hub ETH
→ deposits into VLF Vault
→ receives programmable VLF tokens (maETH)
→✅tokens stay active: can sell, collateralize, combine
→✅yield 15%+ annually
→✅access to institutional strategies and opportunities
→✅liquidity remains “live” and flexible for any DeFi operation
This is exactly what “programmable liquidity” means — your investments become active components for building more complex and profitable financial strategies.
#mitosis #Technology #liquidity #defi #CrossChain