Mitosis $MITO is a blockchain protocol designed to address the problem of fragmented liquidity across different blockchain networks. It aims to unify this liquidity, making decentralized finance (DeFi) more accessible and efficient.
Here's a breakdown of what Mitosis and its native token MITO, are about:
Key Concepts of Mitosis:
Cross-chain Liquidity Engine: Mitosis is a Layer-1 blockchain protocol that acts as a "liquidity engine." It enables assets to be used on multiple blockchains simultaneously by transforming liquidity positions into "programmable and composable assets." This approach reduces the risks associated with traditional bridges.
Solving Liquidity Fragmentation: In the current DeFi landscape, liquidity is often locked within a specific protocol or blockchain. Mitosis aims to solve this by creating "Hub Assets" which are tokenized representations of deposits. These can be moved and utilized across different blockchains, increasing capital efficiency.
Three-Token Model: To align incentives and encourage participation, Mitosis uses a three-token system:
$MITO : The native utility token used for staking, paying for transactions, and other ecosystem activities.
gMITO: The governance token. Users can earn gMITO by locking their $MITO , which gives them voting rights on protocol upgrades and decisions.
tMITO: A time-locked form of MITO that rewards long-term engagement and participation.
EVM and Cosmos Compatibility: Mitosis is built as a Layer-1 blockchain with a modular design. Its execution layer is fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to use familiar tools. The consensus layer is powered by the Cosmos SDK, which provides a fast and customizable framework. This allows Mitosis to benefit from both the Ethereum and Cosmos ecosystems.