PITOK

Mitosis @MitosisOrg - The Novel Layer 1 for Ecosystem Owned-Liquidity [ EoL ] #Let's Explore Together. 1/ On-chain liquidity is crucial to the success of DeFi. As more DeFi platforms emerge, liquidity becomes increasingly fragmented. As a result, protocols need to attract liquidity providers (LPs) by offering both direct and indirect incentives. 2/ However, liquidity from retail providers is often too fragmented, forcing protocols to rely on institutional liquidity. Because institutions hold large volumes of assets, they can negotiate better deals and secure more favorable rewards than retail LPs. 3/ This concentration of power allows institutions to significantly influence the future of protocols, leading to centralization. Mitosis aims to solve this issue by bridging the gap between retail and institutional liquidity, ensuring greater benefits and decentralization. 4/ #Welcome to Mitosis Mitosis is a cross-chain liquidity aggregation protocol that empowers retail LPs by increasing their bargaining power and bridging the gap between institutional and retail liquidity. This enables retail users to maximize their yields and benefits. 5/ To accomplish this, Mitosis aggregates fragmented liquidity from retail providers—seeking higher yields—across various blockchain networks into a unified liquidity pool, allowing it to operate on a scale comparable to institutional providers. 6/ With this larger liquidity, Mitosis gains greater bargaining power and can negotiate better terms with liquidity-seeking protocols, enabling retail users to receive higher yields and benefits than they would by providing liquidity independently. 7/ At the heart of Mitosis lies Ecosystem-Owned Liquidity (EOL), which allows users to deposit their assets into the EOL vault. This exposes users to yields and grants them voting power to determine how liquidity in Mitosis Vaults across chains will be allocated to protocols. 8/ Let's take a look at the Mitosis architecture. There are several key components that play an important role in Mitosis: - Mitosis Vaults - Mitosis Chain - EOL Vault - miAsset - Protocols - EOL Allocation Governance 9/ #Mitosis Chain & Mitosis Vaults Mitosis Chain is a Layer 1 blockchain, where Mitosis Vaults are smart contracts that exist across various chains. They serve as gateways for LPs to bridge their assets to the Mitosis Chain. 10/ An LP can deposit assets into a Mitosis Vault on any chain of their choice. In return, they receive corresponding representative assets on the Mitosis Chain, which can be used across DApps within the Mitosis ecosystem. 11/ #EOL Vault and miAsset The EOL Vault can be considered the key DApp on Mitosis. Users can become EOL LPs by depositing their assets into the EOL Vault on Mitosis and receive corresponding miAssets in return. For example, depositing 1 ETH into the vault will yield 1 miETH. 12/ #Protocols A protocol interested in accessing EOL liquidity can create a proposal that provides relevant details about the protocol. miAsset holders then vote to decide whether to approve the protocol and how much liquidity from the EOL Vault should be allocated to it. 13/ #EOL Allocation Governance EOL LPs have a voice in the allocation. Voting power is based on the Time-Weighted Average Balance (TWAB) of their miAssets over the past 7 days, relative to the total supply of that miAsset, regardless of the chain holding the original assets. 14/ miAsset holders can only vote on proposals that involve their specific miAsset. For instance, if there are 100 miweETH in EOL and a user has a TWAB of 1 miweETH, they would have 1% of the voting power in decisions involving miweETH. 15/ #Reward Distributions A portion of liquidity from Mitosis Vaults is allocated to protocols approved by EOL governance, with the ratio set during governance. Rewards accumulated in these vaults are distributed to all LPs, regardless of their specific deposits. 16/ The infographic below summarizes how all components work together.