While most DeFi protocols are still vying for the top spot, mired in a zero-sum competitive landscape, Mitosis has already transformed itself into a "liquidity middle platform." Through open technical interfaces and standardized frameworks, it empowers the entire industry with its cross-chain capabilities, strategy engine, and governance system. This allows protocols like lending, DEX, and derivatives to leverage programmable liquidity without having to build their own infrastructure, fostering a collaborative ecosystem where everyone thrives together.
The "island dilemma" of traditional DeFi stems from a lack of collaborative efficiency. Lending protocols seeking to access cross-chain liquidity must develop their own cross-chain bridges, which not only takes 6-12 months but also incurs millions of dollars in development and security costs. DEXs seeking to launch structured yield products lack the support of strategy engines and must rely on outsourcing to third-party teams, resulting in slow product iteration and poor compatibility. Furthermore, liquidity data across different protocols is not interoperable, meaning users cannot directly use their staked assets in protocol A on protocol B, creating a user experience pain point of "multiple accounts and cumbersome operations." Previously, a lending protocol, unable to afford cross-chain development costs, missed out on the emerging L2 ecosystem's traffic, leading to a 50% decline in user base within a year.
The core value of Mitosis's "liquidity middle platform" lies in providing modular and reusable infrastructure components. Any external protocol can quickly access Mitosis's core capabilities through simple API integration: integrating with the Vaults module provides multi-chain asset custody and cross-chain transfer capabilities, integrating with the Matrix framework allows direct reuse of its curated strategy library, and integrating with the EOL system allows sharing of the ecosystem's own liquidity pool. This plug-and-play model shortens the protocol's infrastructure development cycle from years to weeks, reducing development costs by over 90%. By integrating with the Mitosis middle platform, an emerging DEX achieved liquidity coverage across 15 chains and exceeded 100,000 users within the month of its launch.
The construction of a cross-chain collaborative network allows the free flow of liquidity across ecosystems. Leveraging Hyperlane's permissionless cross-chain communication layer, the Mitosis middleware has seamlessly integrated with over 140 blockchains. External protocols can leverage its Warp Routes technology to efficiently transfer assets between public chains like Ethereum and Arbitrum, keeping cross-chain message latency down to minutes. Once lending protocol C is integrated through the middleware, users can directly use miAssets staked on DEX D as collateral for loans, eliminating the need for asset transfers. This streamlined process has been reduced from five steps to two, increasing borrowing efficiency by threefold. This collaborative model of cross-protocol asset interoperability completely breaks down liquidity barriers across various scenarios.
Open empowerment of strategy and governance further amplifies the value of the middleware. Mitosis has opened up 18 structured strategies within the Matrix framework to external protocols, allowing them to customize them according to their needs. For example, one derivatives protocol, based on Matrix's hedging strategy module, quickly launched an "LP risk protection product," exceeding $100 million in trading volume within three months of launch. The EOL governance system supports cross-protocol co-governance, allowing external protocols to nominate representatives to join the Mitosis governance committee and participate in liquidity allocation decisions, ensuring their ecosystem needs are fully considered. In a recent "Liquidity Support Priority" vote, proposals from three partner protocols were approved, receiving a total of $200 million in liquidity allocations.
Standardization and security guarantees provide a foundation for scalable middle-office collaboration. Mitosis has established unified interface standards for miAssets/maAssets, ensuring asset compatibility and interoperability across different protocols. Furthermore, its full-stack architecture has been audited by authoritative organizations such as Zellic, eliminating the need for external protocols to worry about security risks. Currently, over 30 protocols across various sectors have integrated into the Mitosis middle-office, covering core areas such as lending, DEX, and derivatives. The overall TVL of the collaborative ecosystem has exceeded $1.5 billion, a 200% increase compared to the combined value of individual protocols. The incentive mechanism is designed to foster a positive cycle in the collaborative ecosystem. Protocols connected to the middle platform are required to contribute 10%-15% of their transaction fee income to the Mitosis Ecosystem Fund, which is used for technology upgrades and ecosystem subsidies. The greater the liquidity a protocol contributes, the higher its weight in fund allocations and governance voting. This "contribution-reward linkage" mechanism attracts more protocols to actively join the collaborative network. A lending protocol contributed $50 million in liquidity and received a $2 million subsidy from the ecosystem fund, further accelerating product iteration.
Mitosis lowers the barrier to collaboration with modular components, connects the value chain with a cross-chain network, and leverages incentive mechanisms to unite the ecosystem, successfully building a "liquidity middle platform" for the DeFi sector. This not only addresses the pain point of inefficient industry collaboration but also reshapes the competitive landscape of DeFi. When open collaboration replaces zero-sum games, the DeFi ecosystem will achieve a leap from "solo competition" to "coexistence and shared prosperity." #Mitosis $MITO @MitosisOrg
