Mitosis Core

CONCEPT OF 'PROGRAMMABLE PRIMITIVES' IN DECENTRALIZED FINANCE AS IT RELATES TO THE MITOSIS ECOSYSTEM

1.0 BRIEF INTRODUCTION

"We propose Mitosis, a network that transforms Decentralized Finance (DeFi) liquidity into a programmable primitive".

Sounds captivating and interesting right? This is the first sentence from the abstract in the recent released Mitosis litepaper which captures the essence of Mitosis project. We might have some questions in our heads like, "what does this 'programmable primitive' mean ? What does it entail ? Well before we go further, this article would not be cumbersome and while I understand alot of people might be overwhelmed by the complex related DeFi jargons or lingo, this article would help tone things down a bit so that readers of all levels can follow through. This would also be brief and concise. When you hear of "programmable primitives" in decentralized finance spaces, just think of the technologies that enable, we, the users everyday interactions with protocols and different chains within the DeFi ecosystem. These interactions ranges from swapping, bridging and lending across the ecosystem, in the form of "smart contracts". Simply put, 'programmable primitives' in DeFi can be said to be key financial functions, which are the fundamental, modular components. Due of their programmability and composability, developers within the ecosystem can create cutting-edge, networked financial systems with a high level of openness and trust. These 'primitives' run on decentralized networks, for example Ethereum. Their operations are transparent with no need for intermediaries, which makes it easy for users within the ecosystem to verify, this encourages trust and security within the DeFi space.

1.1 AS IT RELATES TO MITOSIS ECOSYSTEM Just like cells are the fundamental structural unit and blocking blocks of life, 'programmable primitives' are the basic, fundamental building blocks of DeFi, programmed or implemented as 'smart contracts' to solve specific financial problems. Also one unique characteristics of these primitives is that they're reprogrammable and can be modified to solve evolving financial tasks within the ecosystem. One way Mitosis project tends implement this, is the use of Automated Market Makers (AMM) and Lending protocols. 1.1.1 AUTOMATED MARKET MARKERS (AMM): As seen in the Game of Mitosis testnet exercise, decentralized applications like Chromo, were utilized by users/players within the ecosystem to carry out transactions like swapping through different assets, like supported chain assets, Vanilla assets and miAssets. Automated Market Markers (AMM), allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Some of it advantages is that it provides continuous liquidity for wide range of assets; from popular to non poplar ones, it operates without centralized interference or intermediaries, ensuring users independence. Mitosis ecosystem facilitate interactions with AMMs through supported chain assets, Vanilla assets, miAssets/maAssets. i. VANILLA ASSETS: As described in the Mitosis released litepaper, Vanilla Assets are representations of assets deposited into Vaults on multiple chains supported by Mitosis. They exist on the Mitosis Chain, which means Mitosis depositors can take further action with them. In other words, vanilla assets serve as a gateway/gateway tokens used to get miAssets/maAssets from Mitosis through supported chains. This can be explained using this simple graphic below:

Brief flow explanation of how Vanilla Assets work in Mitosis using Monad EtH for example as a supported chain

I hope this has been and interesting read so far, for more information regarding this topic of Mitosis network as a 'programmable primitives' and other related information in Mitosis, refer to the recently released litepaper .

To end this segment with a little fun;