Vanilla Assets

Vanilla Assets are tokenized representations of assets deposited into the Mitosis ecosystem, issued at a 1:1 ratio with the original deposits. When users deposit tokens into Mitosis Vaults on supported chains, they receive Vanilla Assets on the Mitosis L1 chain. These assets serve as a foundational layer for liquidity management, offering a direct link to the deposited tokens without immediate yield-bearing or governance features, unlike miAssets or maAssets.

How Vanilla Assets Work

1. Asset Deposit – Users deposit supported assets (e.g., ETH or liquid staking tokens) into Mitosis Vaults across compatible chains.
2. 1:1 Issuance – Vanilla Assets are minted on the Mitosis L1, mirroring the deposited asset’s value and quantity.
3. Liquidity Role – They act as a neutral intermediary, enabling users to hold or transfer liquidity within the Mitosis ecosystem.
4. Optional Conversion – Users can opt to convert Vanilla Assets into miAssets through Ecosystem-Owned Liquidity (EOL) to access yield opportunities, or potentially into maAssets via the Matrix system for advanced strategies.
5. Redemption – Burning Vanilla Assets allows users to withdraw their original assets from the vaults, ensuring full redeemability.

Key Features

• 1:1 Representation – Directly tied to the value of the deposited asset.
• Liquidity Foundation – Usable across the Mitosis L1 for bridging or future DeFi integrations.
• Non-Yield-Bearing – Does not accrue rewards unless converted into miAssets or other tokens.
• Flexibility – Provides an entry point for users to engage with Mitosis without committing to yield strategies.

Benefits of Vanilla Assets

• Preserved Liquidity – Users maintain access to their capital without locking into DeFi mechanisms.
• Conversion Option – Easily transformable into yield-bearing miAssets or other ecosystem tokens.
• Cross-Chain Utility – Facilitates seamless asset movement across supported chains via Mitosis Vaults and bridges.
• Simplicity – Offers a straightforward way to interact with the Mitosis L1 before pursuing advanced strategies.

Risks and Challenges

• No Passive Income – Vanilla Assets do not generate yield unless converted.
• Ecosystem Reliance – Their utility depends on the health and adoption of the Mitosis L1 chain.
• Potential Fees – Standard blockchain transaction costs may apply during conversions or redemptions.

Use Cases of Vanilla Assets

• Liquidity Gateway – A user deposits ETH into a Mitosis Vault, receives Vanilla Assets, and later converts them to miAssets for yield farming.
• Cross-Chain Bridge – Vanilla Assets enable a user to move liquidity from one supported chain to another via the Mitosis L1.
• Holding Strategy – A depositor holds Vanilla Assets as a neutral token while deciding on further ecosystem participation.