Modular Liquidity Expansion: Meet Mitosis

We’re excited to introduce Mitosis, the Modular Liquidity Protocol. Powered by Hyperlane, Mitosis is uniquely built to scale to new modular chains and connect their fragmented liquidity.

Why Mitosis

The modular blockchain stack is making blockchains easier to customize and launch than ever. It’s leading to an explosion in new modular chains being launched. But with all these new chains comes with tradeoffs:

• Fragmented liquidity. Worse slippage on bridging and trading.
• Fragmented user experiences. Different wallets, different DEXs, different bridges.
• Restricted Interoperability. The need for these new chains to lobby bridge/interoperability providers to support their chain.

So how can we reunify the liquidity and UX? If blockchains are this easy to launch, shouldn’t it be just as easy to connect them?

Mitosis x Hyperlane fixes this.

How does Mitosis work?

Built by the talented team that implemented the CosmWasm version of Hyperlane, Mitosis is a liquidity layer that will connect any asset between any chain with a Hyperlane deployment.

Architecture

Mitosis is an EVM-compatible Cosmos-based blockchain with Hyperlane built-in as its core interoperability layer.

The Mitosis chain acts as a liquidity hub for connected chains/rollups. For example, Cosmos assets that are collateralized across multiple chains, like TIA from Neutron and TIA from Osmosis, can be unified on Ethereum L1 before they reach L2. Decreased fragmentation.

Mitosis users can deposit an asset from any supported chain and receive a corresponding miAsset that they can use for DeFi on Mitosis chain. More specifics on the mechanism in their docs.

Scaling with Permissionless Interoperability

With Hyperlane integrated, Mitosis gains the unique scaling feature of Permissionless Interoperability. Anyone can deploy Hyperlane on any chain or rollup, adaptable to any VM. In turn, this enables Mitosis to expand to any chain without needing the Hyperlane core team in any capacity.

Incumbent interoperability providers like Axelar, LayerZero, or Wormhole require chains to lobby them for deployments and have sole power over who gets prioritized. This is a massive bottleneck for new chains, and stunts their onboarding growth.

Now with the permissionless architecture of Hyperlane and Mitosis, interoperability and liquidity will be able to flow freely to chains on the frontier. No more waiting or relying on anyone else to support your chain, you can deploy Hyperlane yourself.

Modular Security: Mitosis ISM

The flexibility of Hyperlane’s modular security design enables Mitosis to future proof their security without vendor lock-in. Hyperlane enables developers to customize, stack, wrap existing security vendors, or build their own Interchain Security Modules (ISMs) to fit their security needs. Think of each module as a security lego, and you have the ability to choose and build your own security stack.

Currently, Mitosis is opting for a delegated Proof of Stake method (dPoS) for its ISM. Mitosis has been designed so that the cross-chain liquidity provided directly contributes to enhancing security. As Mitosis liquidity expands, its economic security also increases.

In the future, Mitosis plans to leverage Ethereum restaking and mesh security. And when the time comes, they can just swap out ISMs as new security advancements launch, without ever switching interop providers. No vendor lock-in. Future proof.

Example Use Cases

• Basic asset bridging between Hyperlane-connected chains.
• Native interchain swaps. Trade miAssets on a Mitosis DEX and settle natively. For example, you will be able to trade between native assets like ETH, SOL, TIA, AVAX, and more, all in one place without the hassle of bridging, different wallets, and different DEX websites.
• Interchain lending-borrowing. Lend/borrow different native assets on Mitosis with miAssets all in one place.
• Increase utility and reach of all supported miAssets. Cosmos assets can reach EVM chains and vice versa. And they’ll all be composable on Mitosis.

What’s Next?

Mitosis leading more Hyperlane deployments throughout Cosmos.

Modular liquidity expansion (Mitosis mainnet) is coming soon, with liquid restaked tokens (LRTs) to be the first assets supported.

To learn more about Mitosis, visit their new docs.

To get ahead and deploy Hyperlane on your chain, go here.

More about Hyperlane

Hyperlane is the permissionless interoperability layer connecting the modular ecosystem. With Hyperlane, anyone can connect any blockchain, rollup, appchain, on any VM. Additionally, Hyperlane’s modular security stack gives developers the power to customize their interchain security to their needs.

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