In the DeFi ecosystem, a common limitation is that the assets deposited in a protocol often remain static, which restricts their utility and potential returns. Mitosis seeks to address this situation through two types of position tokens: miAssets and maAssets, which transform liquidity positions into programmable and flexible assets.
The miAssets are part of the Ecosystem Ownership Liquidity (EOL) model. In this scheme, users deposit their "Hub Assets" into a collective vault and receive tokens in exchange that represent their share in that common fund. The miAssets allow for automatic yield generation through strategies distributed across multiple blockchains and also grant governance rights to decide on the use and destination of liquidity. This suggests a collaborative and sustainable approach, without relying solely on temporary incentives.
On the other hand, the maAssets are associated with the Matrix framework and provide access to specific liquidity campaigns. Users who allocate capital to these campaigns receive maAssets that start generating immediate returns. These campaigns are managed by different protocols with concrete objectives, offering more segmented options for those seeking specific opportunities.
The main feature of miAssets and maAssets is their programmable nature, which differentiates them from traditional liquidity tokens that tend to be static. These tokens can be traded in secondary markets, used as collateral in loans, or integrated into more complex financial products. This composability contributes to greater capital efficiency and expands design possibilities in decentralized finance.
In conclusion, Mitosis introduces an interesting proposal to move towards more flexible and decentralized governed liquidity, which could provide new mechanisms for the efficient use of assets in DeFi.
