"Mitosis” the native cryptocurrency of the Mitosis blockchain, a specialized Layer 1 network focused on solving one of the biggest challenges in decentralized finance (DeFi): liquidity fragmentation.
Here's the problem it's trying to solve: In the current crypto ecosystem, liquidity (the pool of assets available for trading) is scattered across dozens of different blockchains. This makes it difficult for users to get the best prices and for capital to be used efficiently.
Mitosis tackles this by creating a unified liquidity layer. It works like this: when a user deposits assets on one blockchain (like Ethereum or Arbitrum), Mitosis creates a "Hub Asset" that can be used on the Mitosis chain. This asset is a liquid, programmable token that can be deployed across various other chains simultaneously. This allows the same capital to be used in multiple places at once, dramatically increasing capital efficiency and yield opportunities for users.
The native token, known as MITO, is the core utility token of the network. It has several key functions:
* Staking: Users can stake MITO to help secure the network and earn rewards.
* Governance: MITO holders can vote on important decisions, such as which new blockchains to integrate or how to allocate liquidity.
* Transaction Fees: It is used to pay for all transactions on the Mitosis blockchain.
In essence, the Mitosis project is building an infrastructure that aims to make the entire DeFi ecosystem more interconnected and efficient by providing a solution for seamless cross-chain liquidity.