Mitosis Crypto Protocol (N/A)

Sufficient liquidity is one of the most important aspects of DeFi apps, forcing them to compete for liquidity to maintain their operations. As a result of the increasing number of applications and the multi-chain transition, protocols struggle to attract enough liquidity from retail investors and often switch to institutions, making the entire DeFi space more centralized than it was designed to be.

Mitosis protocol aims to resolve these problems by offering its Ecosystem-Owned Liquidity (EOL) model to help nascent DeFi protocols bootstrap liquidity. It provides all members with clear reward schemes for asset allocation decisions, leveraging each other’s expertise while unifying the interface for retail LPs, thereby improving the user experience.

Mitosis chain acts as a large decentralized liquidity marketplace that enables users to participate in discussions via the EOL allocation governance model. EOL, or Ecosystem-Owned Liquidity, is a pooled liquidity managed by Mitosis, which provides miAssets in exchange for contributions into the Mitosis vaults funds with 1:1 ratio. 

These miAssets can be used to cast votes on the allocation of deposited assets to various yield sources and DeFi ecosystem governance decisions, as well as to receive distributions of yield-generated rewards. This allows users to play a bargaining role in the stable growth of the Mitosis DeFi ecosystem.

Meanwhile, DeFi apps in the Mitosis ecosystem can initiate discussions and proposals regarding the platform’s improvements in the reward distribution model. All these steps enhance users' experience of participating in incentivized programs while allowing DeFi applications to improve their reward distribution mechanisms to acquire more liquidity.

🪙 Mitosis token: Although Mitosis states that crucial influence on the DeFi ecosystem of the protocol will be made by LPs, our team assumes the Mitosis token will offer similar features while also potentially securing its L1 blockchain network. However, information about the potential token utility, economy, or release dates remains undisclosed.

Currently, it has a running points farming campaign for depositing various assets and owning miAssets. We assume the points will be the main criteria to qualify for the Mitosis airdrop. Considering this information, the CoinLaunch team decided to conduct comprehensive research on the Mitosis crypto project. Here are some main advantages and disadvantages of the protocol:

✅ Mitosis pros:

• Over $69M in TVL reached since the launch of the platform in April 2024;
• High PR, Growth, and Influencer marketing scores;
• Presence of the Amber Group as a leading investor in the Seed round;
• Potentially, future funding rounds might attract more top-tier funds;
• Diverse network of partners supporting the project;
• Above-average SMM performance;
• Presence of a clear roadmap.

❌ Mitosis cons:

• In-demand product with an interesting concept, but currently doubtful whether it can significantly impact the crypto currency world;
• No tokenomics;
• No audits from any security company;
• Below-average SEO performance;
• Very weak marketing infrastructure;
• Lack of top-tier funds invested in the project except the Amber Group;
• Lack of work experience in the top tier companies among the project’s core team.