Mitosis is a Web3 protocol that allows the transformation of liquidity positions (LP) into tradable assets, used as collateral or combined to create new financial instruments.
This platform operates on multiple chains, allowing users to deposit assets into the Vault and receive Hub Assets represented on the Mitosis Chain, thereby participating in frameworks like EOL or Matrix to optimize profits and govern capital transparently.
MAIN CONTENT
Mitosis helps transform LP into flexible programmable assets that can be used in various investment strategies.
Users can choose to govern democratically through EOL or participate in separate liquidity campaigns with Matrix.
The multi-chain ecosystem along with the Settlement Engine ensures data synchronization, increasing transparency and efficiency.
What is Mitosis?
Mitosis is a DeFi protocol that allows users to transform LP into tradable assets or use them as collateral.
The uniqueness of Mitosis lies in the ability to program LP through tokens like miAssets or maAssets, allowing for profit separation, combination, or restructuring into complex financial products.
As a result, liquidity that was locked in traditional Vaults is unlocked to participate in diverse strategies.
What is the mission of Mitosis?
The mission of Mitosis is to reshape liquidity management in DeFi, providing an experience akin to financial institutions for individual investors.
The platform aims to transform liquidity into programmable assets, increasing capital efficiency, expanding access, and creating a more transparent and democratic financial model within the DeFi ecosystem.
"Liquidity is only truly valuable when it can flow and be reinvested, rather than being frozen in the Vault."
CEO of Amber Group, speaking at the Mitosis investment announcement event, 2024 (Source: Amber Group)
What distinguishes Mitosis?
Mitosis differentiates itself by the ability to program LP into flexible, transparent, and democratic assets in governance.
Unlike traditional Vaults, Mitosis users are not locked out of liquidity. They can use LP tokens for trading, collateral, profit separation, or campaign participation.
Additionally, access to yields that were previously only available to institutions is also extended to individuals through the EOL and Matrix frameworks.
What are the main components of Mitosis?
The main components of Mitosis include Vault, Hub Asset, miAssets, maAssets, EOL, Matrix, Mitosis Chain, and Settlement Engine.
Vault is where users deposit assets; Hub Asset is the representative asset minted on the Mitosis Chain. Users can choose EOL to receive miAssets with governance rights or Matrix to receive maAssets from liquidity campaigns.
The Settlement Engine ensures that profit, loss, and reward data are synchronized in real-time on the Mitosis Chain.
What is the EOL framework in Mitosis?
EOL (Ecosystem-Owned Liquidity) is a democratic governance framework where the community decides on capital allocation through voting.
When depositing Hub Assets into the EOL Vault, users receive miAssets representing ownership and profit rights. Yields are distributed based on the ownership ratio of miAssets, updated periodically.
This model helps retail users access yields that were previously only available to institutions, while increasing transparency and community accountability.
"EOL provides equal rights for the community in managing capital flows – a step forward for decentralized financial democracy."
DeFi Trends Report 2024, Messari
How does the Matrix framework work in Mitosis?
Matrix is a framework focused on conditional liquidity campaigns, allowing users to choose specific campaigns to optimize profits.
When participating in a campaign, users deposit Hub Assets into the Matrix Vault and receive maAsset (for example, maweETH).
Profits may include MITO points, project tokens, or returns from financial strategies like Straddle Vault. Matrix offers high flexibility, allowing investors to choose campaigns that suit their risk appetite.
What role does the Mitosis Chain play?
Mitosis Chain is a layer-one blockchain that handles transaction processing and manages Hub Assets, miAssets, and maAssets.
This chain is designed for optimal payments, pricing, and data synchronization, ensuring that transactions are conducted transparently, quickly, and at low costs.
With an integrated Settlement Engine, all data regarding profits, losses, and rewards are updated in real time.
How did Mitosis successfully raise funds?
On May 2, 2024, Mitosis announced the successful raising of 7 million USD in a funding round led by Amber Group.
Other participating funds include GSR, Big Brain Holdings, etc. This demonstrates the significant potential of Mitosis in becoming a pioneering multi-chain DeFi platform.
The capital will support technology development, expand the ecosystem, and attract more integrated projects.
"The participation of major investment funds is clear evidence of Mitosis's vision and innovative model."
CoinDesk Research, 2024
What value does Mitosis bring to DeFi?
Mitosis enables the transformation of static liquidity into flexible assets, creating new financial strategies and democratizing governance rights.
Thanks to the multi-chain model, users can deposit assets on Ethereum, Arbitrum, Linea, etc., and use them on the Mitosis Chain.
This helps connect ecosystems, expand the application range of DeFi, while providing institutional-like returns for individual users.
Frequently Asked Questions
Does Mitosis support multiple chains?
Yes, Mitosis supports asset deposits on Ethereum, Arbitrum, Linea, and many other chains, all synchronized on the Mitosis Chain.
How do miAssets and maAssets differ?
miAssets are issued through EOL and represent governance ownership rights, while maAssets belong to Matrix and are linked to specific campaigns.
How to participate in EOL?
Users deposit Hub Assets into the EOL Vault to receive miAsset, thereby participating in governance and earning profits according to their ownership ratio.
Is Mitosis transparent about its valuation?
Yes, the real-time pricing system on the Mitosis Chain along with the Settlement Engine makes all yield, loss, and reward data transparent.
Which funds have invested in Mitosis?
As of May 2024, Mitosis successfully raised 7 million USD from Amber Group, GSR, and Big Brain Holdings.
Source: https://tintucbitcoin.com/mitosis-la-gi/
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