⚡ DeFi suffers from liquidity fragmentation across different chains, and the deposited assets are constrained and not used efficiently. The Mitosis project aims to solve these problems by building a Layer-1 network that enables users to convert assets into Hub Assets and manage them, to generate yields and activate liquidity management across multiple chains.
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❖ What are the mechanisms and advantages ❖
When depositing assets into Vaults on a sub-chain like Ethereum or Arbitrum, they are converted into Hub Assets on the Mitosis network, allowing for the unlocking of assets and utilizing them in various strategies for better returns.
Transparency is crucial in the project, where token holders can participate in governance through the gMITO token, influencing upgrade decisions, liquidity allocation, and distribution across chains.
There is also tMITO, which is a time-locked version of MITO for participants in the Airdrop or for initial distribution holders, and they receive additional rewards when the designated period ends.
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❖ Tokenomics and Distribution ❖
The total supply of MITO tokens is 1,000,000,000 tokens, and it is not expected to exceed this limit.
A dedicated part for marketing, platforms, community rewards (airdrop), and initial distributions such as Binance HODLer Airdrops. For example, about 1.5% of the supply was allocated for the airdrop with a campaign on Binance Wallet.
The use of tokens includes: staking, earning yield incentives, governance via gMITO, and participation in campaigns like Matrix and Zootosis.
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❖ Technology and Engineering ❖
Mitosis is built on a Layer-1 structure with a separation between the execution layer and the consensus layer; execution supports EVM, making it easier to migrate contracts and applications from Ethereum, while consensus uses Proof-of-Stake with a system like CometBFT within the Cosmos SDK ecosystem to ensure efficiency and security.
Assets that are restaked (Liquid restaking) and distribute liquidity dynamically across Vaults, ensuring that assets do not remain idle but are utilized for returns.
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❖ Governance and Community ❖
MITO holders can generate gMITO through staking, which grants them voting rights in governance, such as setting chain parameters, choosing strategies, and managing liquidity.
Community contributions are important: campaigns like 'Evolve Builders' allocated a percentage of the supply to support developers and build projects that serve the network and community.
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❖ MITO Opportunities and Challenges ❖
Opportunities:
Improving capital efficiency for users who were previously forced to keep assets idle or confined in sub-chains.
Support for developers to build advanced DeFi projects that leverage pooled liquidity and multi-chain services.
The existence of distributions (Airdrop, reward campaigns) gives early users the opportunity to enter before the network grows and records widespread usage.
Challenges:
It is essential to ensure the security of smart contracts and major security audits, especially with multi-chain complexity.
Dilution risks from distributions and user rewards if not managed carefully in terms of timing and allocation.
The competition is fierce in the realm of multi-chain liquidity protocols, oracles, and cross-chain bridging services.
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❖ Conclusion ❖
⚡ MITO represents a promising step towards building the necessary system for decentralized finance where liquidity knows no chain constraints, and assets continue to operate once deposited. It seeks to change the rules through a multi-token system (MITO, gMITO, tMITO), a robust technical structure, and effective community participation.
🔶🔶🔶 Mitosis: where the
Programmable liquidity, multi-chain transactions, and community governance for tomorrow 🔶🔶🔶
