Mitosis is a Layer 1 blockchain specifically designed to solve the problem of fragmented liquidity across the decentralized finance (DeFi) landscape. Its cross-chain architecture operates on a hub-and-spoke model, with the Mitosis mainnet acting as the central hub. The core of this system is the concept of "Ecosystem-Owned Liquidity" (EOL), which allows the protocol to own and manage its own liquidity, moving away from the "rented" liquidity model of traditional DeFi that relies on short-term incentives.
When a user deposits an asset (like ETH or BNB) into a Mitosis Vault on a connected blockchain (e.g., Ethereum or the BNB Chain), that asset is locked in an audited smart contract on its native chain. In return, the Mitosis protocol mints a "Hub Asset" (e.g., miETH or miBNB) on the Mitosis mainnet. These Hub Assets are standardized, 1:1 representations of the underlying deposited assets and serve as the core component for all cross-chain activity. This design separates the security of the underlying asset from the programmability of its tokenized representation, making cross-chain operations more secure and efficient.
This architectural approach allows for the creation of a unified liquidity layer where assets can be deployed across multiple chains simultaneously. Hub Assets can be used within the Mitosis ecosystem for various purposes, such as staking, lending, and participating in different yield strategies. The protocol leverages a secure cross-chain messaging system, powered by partners like Hyperlane, to ensure the integrity and authenticity of cross-chain transactions. By using a modular and permissionless architecture, Mitosis is able to easily expand to new blockchains and a diverse array of DeFi applications, positioning itself as a foundational infrastructure layer for a more connected and capital-efficient multi-chain future.
