What’s miAsset?: The Engine of Mitosis Flywheel

Published in

Mitosis Blog

3 min readApr 19, 2024

miAsset is Mitosis’s proposal for the next DeFi primitive that scales with the entire multi-chain ecosystem. miAsset accrues value as more blockchain transactions span multiple networks. Let’s first address what miAsset is, then delve deeper into how miAsset scales with interoperability.

What’s miAsset?

LP Token with DeFi Potential

miAssets are 1:1 receipt tokens that liquidity providers receive when they deposit assets into the Mitosis Vaults. For example, if liquidity providers deposit weETH to the Mitosis Vault on any network, they receive the same amount of miweETH on the same network. Liquidity providers can utilize their miAssets in DeFi applications and redeem their original assets at any time by burning the miAssets. miAssets are pegged 1:1 to the original assets, ensuring their value remains the same as the original assets.

Default Yield

miAssets accrue yields from various sources in a rebase format, with cross-chain transaction fees as the default source. Holders of miAssets see their balances grow over time without any active management. The primary reward stems from cross-chain activities utilizing LPs’ original Mitosis Vault assets. Fees accumulate in the Mitosis Vault in the format of original assets. Later, holders of miAssets can burn their increased miAsset balances to redeem their original assets on a 1:1 basis.

The Engine of Interoperability

miAsset spearheads blockchain interoperability, breaking down silos between networks and ecosystems. Below is the positive feedback loop that sparks a cooperative environment within the blockchain landscape.

The default strategy for miAssets’ yield involves fees from cross-chain activities. As these activities grow within the multi-chain ecosystem, miAssets accumulate greater rewards.
Competitive yields drive up the demand for miAssets.
As more assets convert into miAssets, liquidity within the Mitosis Vault increases and diversifies.
The expanded liquidity enhances interoperability powered by Mitosis. Mitosis can facilitate faster cross-chain transactions with less slippage and support a broader range of networks and assets.
Enhanced interoperability leads to a further increase in cross-chain interactions.

The connection between miAssets and interoperability presents a compelling rationale for believers in blockchain interoperability to hold miAssets. The choice of cross-chain fees as the primary reward underscores Mitosis’ commitment to a unified, cooperative future in the blockchain landscape. Upcoming articles will cover how Mitosis Vault’s yield strategy diversifies to optimize capital-efficiency for miAsset holders.

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