Understanding Mitosis Vault Liquidity Framework 🪂

Let’s break down how the VLF system works inside the Mitosis ecosystem

And why it might be one of the cleanest ways to tap into DeFi yield across chains without juggling a million bridges 👇

> What is VLF?

Vault Liquidity Framework (VLF) is Mitosis' approach to helping users generate yield on their assets

By tapping into multiple DeFi opportunities all while staying flexible and cross-chain.

You supply assets → receive yield-bearing tokens → use them wherever you want across chains.

> How VLF Vaults Work?

There are 2 core processes to understand:

1. Supply Process

- You deposit tokens (like ETH, USDC, BTC) into a VLF vault

- The vault mints a synthetic version of your asset - called miAssets or maAssets

- These new tokens can now be used across DeFi protocols for yield generation, swaps, staking, etc.

- Basically:

You lock your original tokens in → get new liquid tokens out → go farm yield wherever it’s hot.

2. Reclaim Process

Now, when you’re ready to exit and get your original tokens back, here’s how it goes:

This happens in 3 stages:

- Stage I: Reclaim:

You initiate a request to withdraw your funds

The vault moves your claim into a reclaim queue (note: it’s not instant)

- Stage II: Resolution

The system waits for two things:

Sufficient liquidity to become available

> A minimum waiting period (usually ~7 days)

- Example:

If there’s 1 ETH reserved in the vault, then only 1 ETH can be processed for reclaim.

- Stage III: Claim

Once the above conditions are met, you’re free to claim your original asset back.