What’s Mitosis Doing with LRTs?

Mitosis is a cross-chain liquidity protocol that enables asset transfers between networks, and LRTs are among the first assets Mitosis supports. This article details Mitosis’ upcoming plans for LRTs and how users can benefit from Mitosis’ initiatives.

This article will be particularly helpful if you are:

• a multi-chain user seeking the most lucrative yield opportunities for your LRTs across various networks or,
• a liquidity provider (LP) looking to add multiple yield layers to your LRTs.

Transfer with Mitosis: Cross-chain Expansion of LRTs

Mitosis will catalyze the cross-chain expansion of LRTs, opening up new opportunities for LRT holders. Currently, LRTs predominantly exist on Ethereum layer 1. The successful closing of the Mitosis Expedition Testnet has shown the potential of Mitosis as the catalyst in onboarding LRTs to layer 2s. The Expedition Mainnet will facilitate LRT’s cross-chain inflow to L2s via bootstrapping LRTs to the Mitosis Vaults on each L2. This expansion will trigger various L2 protocols to vie for the LRT liquidity, providing more asset allocation options for the LRT holders. Then, LRT holders can utilize Mitosis cross-chain transfer to seamlessly allocate their assets across different networks for optimized yield and lower transaction costs.

Deposit to Mitosis: Additional Yield Layers for LRTs

Instead of using Mitosis to transfer LRTs to other networks, LRT holders can also deposit into Mitosis. They can add the protocol fee revenue sharing into their LRT yield stack while staying liquid. Here’s how it works:

• Upon depositing LRTs into Mitosis, LPs receive cross-chain derivatives called miAssets on a 1:1 basis. For example, depositing 1 weETH gives you 1 miweETH.
• By simply holding miAssets, LPs earn a share of Mitosis’ cross-chain protocol fees. The reward is accumulated in the miAssets in a rebase format.
• Additionally, LPs can add another yield layer by utilizing their liquid miAssets in various DeFi protocols.

Why LRTs, Though?

Both LRTs and Mitosis empower the blockchain landscape’s transition towards the modular era.

LRTs solve the fragmented security problem of the modular era by reusing the security of staked ETH. EigenLayer invented restaking, with LRTs being the derivative form of restaked ETH. Restaking removes the need for each network to bootstrap its own security separately, thus preventing fragmented security among networks in the modular era.

Similarly, Mitosis addresses the fragmented liquidity problem of the modular era. In the modular era, users and developers must navigate through numerous interoperability solutions, each supporting only a limited number of networks. A unified liquidity layer eliminates the necessity for users and developers to study and trust multiple cross-chain protocols. Mitosis provides a unified cross-chain liquidity solution through its scalable design, thus preventing the fragmented liquidity problem in the modular era.

Join the Mitosis Community

Please follow our journey and provide your thoughts on our Discord and X. We’ll run regular AMAs & podcasts and provide other essential updates to keep you in the loop. Interested in how Mitosis works? Take a deeper dive into our technical documentation.

Link3 | Website | Expedition | Documentation | X (Twitter) | Discord | Telegram

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