Avalanche Subnets vs. Mitosis Modules: Who Wins the Race for Institutional Web3?

Avalanche Subnets vs. Mitosis Modules: Who Wins the Race for Institutional Web3?

Introduction

On June 19, 2025, Avalanche introduced a new initiative: Subnet-as-a-Service, designed to help institutions deploy permissioned blockchain environments on demand. These private subnets come with customizable security, gas, and governance parameters - tailored for enterprises that want the power of Web3 without the risk of full public exposure.

This move echoes a broader shift: Web3 is modularizing, and Mitosis is already built for it. In this article, we compare Avalanche’s institutional subnet model with Mitosis’s chain-agnostic, dApp-first modular framework, and what it means for developers, enterprises, and DAOs alike.


What Avalanche’s Subnet-as-a-Service Offers

Avalanche’s rollout includes:

  • Custom permissioned subnets for enterprise use
  • Full control over validator sets and compliance policies
  • Pre-packaged infra via AvaCloud
  • Ideal for DeFi protocols, banks, and regulated asset issuers

These subnets are isolated but interoperable, forming a semi-private multichain within Avalanche’s broader L1.


The Mitosis Perspective: Modularity Without Walls

While Avalanche builds vertically within its ecosystem, Mitosis operates laterally:

  • Mitosis dApps (e.g. MikadoHUB, Matrix Vaults, Spindle) are chain-agnostic and modular by design
  • Morse DAO governs rollup deployment, liquidity logic, and developer tooling in a public, permissionless way
  • Mitosis doesn’t enforce subnet isolation - it empowers composable logic across chains via zkLog and miAssets

This horizontal design lets any developer fork, deploy, and modify tools for their own mini-ecosystem.


Comparison Table: Avalanche Subnets vs. Mitosis Modules

FeatureAvalanche SubnetsMitosis Modules
Ecosystem ScopeWithin Avalanche L1Chain-agnostic
Control ModelInstitution-controlledDAO-governed (Morse DAO)
ComposabilityLimited to subnet boundariesComposable across dApps & chains
Deployment UXAvaCloud servicePermissionless forks + open tooling
Enterprise FitHigh for regulated clientsMedium–High (with DAO flexibility)
Community InvolvementLowHigh — dApp & liquidity contributors

Strategic Takeaways for Mitosis Ecosystem

  1. Build the Public Counterpart
    Develop "Rollup-as-a-Service" templates governed by Morse DAO - an open alternative to AvaCloud.
  2. Modular Enterprise Kits
    Launch SDKs or templates to integrate Mitosis logic into private deployments (e.g. on Gnosis, Base, or OP Chains).
  3. DAO-Gated Infrastructure
    Let communities vote on feature sets, audit logic, or scale funding through quests & referrals.
  4. Use Cases to Target
  • Composable vaults (Matrix)
  • GameFi + NFT utility layers (MikadoHUB, YieldKingZ)
  • Governance-as-a-service (Morse stack)

Conclusion

Avalanche is targeting institutions with a sandboxed, top-down Web3 model. Mitosis, in contrast, is crafting a bottom-up alternative - fully modular, permissionless, and governed by community.

Both models have merit. But in a world tilting toward open innovation, Mitosis’s composability-first architecture may prove more durable, adaptable, and inclusive.