Inside Zootosis: StakeStone, Ethena, Lombard, and Solv – The “Secondary” Assets Powering the Vaults

Zootosis is a DeFi event and yield campaign launched by Morph in collaboration with Mitosis, aimed at boosting liquidity through a novel vault system. Participants deposit assets into Matrix Vaults and earn points (“Zoots”) that entitle them to rewards in Morph and Mitosis tokens. What makes Zootosis particularly interesting is the variety of assets one can deposit – not just the usual bluechips like WETH or USDC, but also an array of secondary assets from innovative DeFi protocols. These include StakeStone, Ethena, Lombard, and Solv Protocol assets. In this article, we’ll introduce these key assets, explain what they do and how they contribute to the ecosystem, and why they’re included in Zootosis vaults.

Zootosis Overview: Main vs Secondary Assets

Zootosis is described as an “onchain yield event” to grow sustainable, long-term liquidity in the Morph ecosystem. It coincides with the debut of Matrix Vaults on Morph – vaults that allow users to deposit various tokens and earn dual rewards (Morph’s MORPH token and Mitosis’ MITO token) without lockups. Instead of locking, users accumulate Zoots points over time; the longer you stay and the more you deposit, the more Zoots you get. These points determine your share of the reward pool.

One key concept is that Zootosis supports different categories of assets:

• Main Assets: These are the big, core assets like WETH (Wrapped ETH), WBTC, USDC, USDT. They have the largest vault allocations and presumably lower risk.
• Secondary (Alt) Assets: These are more novel or specialized assets like mphETH, weETH, STONE, sUSDe, etc., which were introduced with fixed TVL caps to ensure fairness. The “wildcard asset” is even chosen via community vote.

Our focus is on those secondary assets. They are included to diversify the event and allow users who hold these cutting-edge DeFi tokens to participate and benefit. By capping TVL per asset, Morph ensures no single smaller asset skews the rewards too much. Including these assets can also attract communities from those projects to Zootosis, expanding reach.

Let’s delve into each of the key secondary assets mentioned: StakeStone’s STONE, Ethena’s sUSDe (and USDe), Lombard’s LBTC, and Solv’s SolvBTC or other vouchers.

StakeStone (STONE): Omnichain Liquid Staking for ETH/BTC

StakeStone is an omnichain liquidity asset protocol building an adaptive staking network for liquid ETH and BTC. In essence, it provides a liquid staking token (LST) named STONE (for ETH) and potentially SBTC (for BTC). Liquid staking means when you stake a base asset (like ETH), you receive a tokenized representation (like STONE) that continues to accrue staking yield and can be used in DeFi.

• Purpose: StakeStone aims to create the first stable, yield-bearing liquid ETH/BTC across multiple chains. It’s like Lido’s stETH, but with a cross-chain angle and some innovative mechanisms. They mention an “adaptive staking network” and “risk-free consensus layers”, suggesting StakeStone diversifies validators or staking across different networks (perhaps Ethereum, maybe other POS chains for BTC via bridging).
• STONE Token: STONE is a non-rebasing ERC-20 that grows in value as staking rewards accumulate. This is similar to how wstETH works – its value relative to ETH increases over time. StakeStone likely stakes ETH in validators or via LSD protocols and issues STONE as claim.
• Utility: By holding STONE, users earn staking rewards on ETH while still being able to use STONE in DeFi (lend it, provide liquidity, etc.). StakeStone also builds vaults and partnerships: e.g., they had a “Berachain Vault” to encourage early deposits of ETH for Bera (a new chain).
• Why in Zootosis: STONE represents a yield-generating asset (yield-bearing ETH). Including STONE in the vaults encourages LSD holders to join. It deepens liquidity for STONE and integrates StakeStone’s community. For Morph/Mitosis, it’s attractive because STONE is stable in value relative to ETH but earns additional yield. So depositors get both the Zootosis rewards and the underlying ETH staking yield – a win-win. StakeStone’s presence brings extra TVL from liquid staking users, and fosters cross-project collaboration (Mitosis, Morph, StakeStone).
• Risk/Reward: STONE is a bit more complex/risky than raw ETH (as it depends on StakeStone’s protocol safety), hence it’s categorized as secondary and likely had a cap. But presumably, Morph vetted it and sees synergy.

In summary, StakeStone contributes a liquid staked ETH asset (STONE) to Zootosis, aligning with the modular liquidity theme of Mitosis – connecting stake yield with cross-chain liquidity. It offers depositors additional yield and showcases an innovative LSD project.

Ethena (USDe & sUSDe): Synthetic Stablecoin with Yield

Ethena is a DeFi protocol that created USDe, a fully on-chain synthetic dollar stablecoin, and sUSDe, a yield-bearing version of iti. Ethena’s approach is novel: USDe is minted by delta-hedging crypto assets (like long spot + short futures) to maintain a USD peg without relying on fiat banks.

Key points:

• USDe Stablecoin: It’s fully crypto-backed and algorithmic in a sense. For example, Ethena might use BTC, ETH, and SOL as collateral and short futures to offset price moves. The result is a stablecoin that doesn’t depend on centralized reserves. It’s intended to be resilient and censorship-resistant.
• sUSDe (Staked USDe): Ethena offers a savings product – when you hold USDe, you can stake it to get sUSD. sUSDe accrues yield (like interest) over time. The yield comes from things like perpetual swap funding rates (since Ethena’s system shorts futures, if perpetuals have positive funding, the short position earns yield). Recently, they mentioned around ~8% APY for sUSDe due to funding rate yield.
• Benefits: Essentially, USDe is a stablecoin, and sUSDe is a stable-value asset that grows in amount (or price) as it earns. This gives DeFi users an alternative to, say, USDC but with decentralized backing and some yield.
• Role in Zootosis: They listed sUSDe as one of the alt assets. By including sUSDe, Zootosis allows stablecoin holders to deposit and earn Zoot rewards on top of their ~8% from Ethena. For Mitosis/Morph, having a new stablecoin like USDe/sUSDe in vaults adds diversification beyond USDC/USDT. It might also attract the Ethena community to join Zootosis, increasing TVL. Moreover, Ethena’s USDe aligns with the ethos of “Real USD yield from crypto” which is a hot narrative (Real World Assets and yield).
• Why sUSDe vs USDe: They likely chose sUSDe (the staked version) because Zootosis is a yield event, and sUSDe yields more than plain USDe. Also, depositors locking sUSDe keep accruing Ethena’s yield. However, note that sUSDe might be less liquid; Ethena probably has a mechanism to unstake to USDe.
• Risk: USDe/sUSDe are relatively new and have some complexity (rely on perpetual futures markets). But they are fully on-chain and backed. By capping how much sUSDe can be deposited, Morph limits exposure. But including it is forward-looking – if Ethena succeeds, Zootosis participants benefit from being early.

In summary, Ethena brings a yield-bearing stablecoin (sUSDe) into Zootosis. This offers participants a low-volatility asset option that still earns returns. It bolsters the vaults with stable liquidity and ties into the theme of on-chain innovation (synthetic dollars). It also exemplifies how Zootosis vaults aren’t just about speculative assets, but also about sustainable yield instruments.

Lombard (LBTC): Liquid Staking for Bitcoin

Lombard Finance is a protocol that connects Bitcoin to DeFi by issuing a liquid staking token for BTC called LBTC. Bitcoin traditionally is outside DeFi (sitting on its own chain), but Lombard has built a bridge and staking system to bring BTC yield on-chain.

Key aspects:

• Liquid Staking BTC: Lombard launched a toolkit/SDK enabling easy Bitcoin staking for exchanges and wallets. Essentially, when a user stakes 1 BTC via Lombard, that BTC is held (likely with a custody + on-chain proof scheme) and an equivalent amount of LBTC is minted to the user’s EVM wallet.
• LBTC Token: LBTC is a yield-bearing representation of staked BTC. Lombard uses the BTC to run or delegate to Bitcoin miners? Actually, Bitcoin doesn’t have staking (it’s PoW), so how yield? Lombard likely integrates with Babylon or Stacks or some Bitcoin DeFi to generate yield, or provides yield from fees. The Coindesk piece says LBTC yield was ~3% in their vault. Possibly, Lombard’s vault (on EVM, powered by Veda) deploys BTC into DeFi strategies (like lending on Sovryn or DLCs generating yield). Or it could rely on something like Stacks’ consensus rewards.
• Adoption: Major exchanges Binance and Bybit integrated Lombard’s SDK to let users earn on idle BTC. This suggests trust and scale – it’s aiming at unlocking the huge ~$150B of idle BTC.
• Why in Zootosis: Zootosis including a BTC derivative is significant. They listed presumably LBTC as a deposit option (the forum hint about adding solvBTC suggests one or both forms of BTC LST were considered). Having LBTC means Bitcoin holders can join Zootosis and earn cross-chain DeFi rewards on top of their BTC staking yield. It brings Bitcoin liquidity into the Mitosis/Morph ecosystem, aligning with Mitosis’ cross-chain liquidity mission (Mitosis often talks about bridging L1 liquidity like BTC into its vaults). LBTC depositors get Zoots plus the ~3% BTC yield from Lombard’s vault.
• Lombard vs SolvBTC: Actually, the forum mention suggests possibly using Solv’s BTC staking too. It’s possible both Lombard and Solv offer solutions – maybe they allowed either LBTC or SolvBTC (see next section). But given Lombard’s traction, LBTC likely was chosen or at least on the roadmap.
• Benefits: Lombard expands the asset list beyond Ethereum-based assets to Bitcoin, via an ERC-20 representation. This fosters a truly multi-chain event. It also signals Mitosis interest in BTC liquidity (imagine future Mitosis vaults with BTC).
• Risks: Trust in Lombard’s bridging (they have a mainnet vault, with checks and audits). They did incorporate risk controls (auto and manual review of BTC deposit transactions). The coin is relatively new (launched ~7 months before Apr 2025) but has grown to $4B BTC staked, claim Coindesk which is huge if accurate. That suggests a lot of confidence and usage.

In short, Lombard Finance provides LBTC, a liquid BTC token that yields and can be used in DeFi. Its inclusion in Zootosis vaults allows Bitcoin holders to partake in yield farming without selling BTC. It enhances the cross-chain appeal and brings the #1 crypto asset into the fold, which is a big deal for a DeFi campaign.

Solv Protocol: Financial NFTs and Bitcoin Staking (SolvBTC)

Solv Protocol is known for pioneering Financial NFTs – tokenized vesting vouchers, bonds, and other structured products. It has recently expanded into the Bitcoin space with its own BTC staking solution. Given the context, Solv’s relevant asset in Zootosis is likely SolvBTC or related BTC yield tokens:

• Financial NFTs: Solv created a marketplace for things like vesting tokens (projects can issue vesting schedules as NFTs), convertible bonds, and other innovative DeFi instruments. These can provide fixed income, options, etc., as NFTs that can be traded.
• SolvBTC Staking: In Dec 2024, Solv launched a mainnet Bitcoin staking solution. It allows users to stake BTC (directly from Bitcoin L1) and mint an ERC-20 representation, which we’ll call SolvBTC, in their EVM wallet. The mechanism uses an OP_RETURN in the BTC transaction to link it to the user’s address on EVM and involves a verification by Solv’s system (with auto and manual steps). Once done, the user gets SolvBTC on-chain.
• Yield for SolvBTC: Solv presumably leverages the staked BTC in DeFi strategies. Perhaps similar to Lombard, or they might partner with protocols (one clue: Solv’s site mentions strategies and partnerships like with StarkNet for BTC yields). They might use cross-chain bridging to put BTC into EVM yield farms (like lending protocols that accept BTC).
• Solv in Zootosis: The Mitosis forum included a suggestion: “Adding solvBTC option for BTC staking in collaboration with Solv protocol”. This implies they considered letting users deposit Solv’s BTC LST too. Maybe the alt asset list’s “and more” covers SolvBTC. If not in Phase 1, it could come in Phase 2 of Zootosis (since Phase 2 involves deploying maAssets into strategies, they might partner with Solv’s strategies).
• Contribution: If Solv assets are included, it brings in a sophisticated DeFi dimension. For example, Solv also had a DeFi Vault product via Veda (the same mentioned with Lombard). Possibly, depositing a Solv DeFi Voucher NFT or similar could be considered, but since Zootosis mainly takes fungible tokens, Solv’s main fungible thing is SolvBTC or maybe a SolvUSD if they had any. However, context strongly suggests SolvBTC.
• Value-add: Collaboration with Solv means tapping into their user base who stake BTC or buy their yield vouchers. It emphasizes Mitosis’ goal of bridging even Bitcoin into its network.
• Financial NFTs inclusion: There might not have been direct NFT deposits (like Solv vouchers) in Zootosis because it’s simpler to use ERC-20 tokens. So likely Solv’s role is via SolvBTC (which is an ERC-20).
• Risks: Similar to Lombard – reliance on Solv’s bridging and custody. Solv introduces one more intermediary step (they mention auto sign and possibly manual audits of BTC txns). But Solv is an established protocol, known for innovation.

Thus, Solv Protocol is a bit unique among the four: it provides structured yield products and an alternative BTC staking avenue. Including Solv’s asset ensures that Zootosis vaults capture a wide variety of DeFi innovations – from LSDs to synthetic stablecoins to BTC staking from different sources. It also could foster a partnership: maybe Morph or Mitosis might later integrate Solv’s vouchers for Mitosis vault yield distribution or something creative.

Why These Assets in Zootosis Vaults?

Bringing it all together, why did Morph/Mitosis choose StakeStone, Ethena, Lombard, and Solv assets for Zootosis?

• Diversification: They didn’t want only the big caps (ETH, BTC, stablecoins) in vaults. Including these gives a diversified basket of assets, which likely results in a broader distribution of Zoots. It prevents one asset from dominating and encourages multiple communities to join.
• Attracting Communities: Each secondary asset has its own community of holders:By supporting these, Zootosis markets itself to all those communities. It’s a cross-pollination marketing tactic: e.g., Ethena announced to its users “deposit sUSDe in Morph Zootosis for extra rewards”.
  • StakeStone -> LSD yield farmers
  • Ethena -> stablecoin and DeFi users hunting APY
  • Lombard -> Bitcoin holders wanting yield
  • Solv -> advanced DeFi users interested in financial NFTs or BTC strategies
• Showcasing Mitosis’ Cross-Chain Vision: Mitosis is about modular liquidity across chains. The lineup of assets reads like a tour of innovative cross-chain DeFi:It proves Mitosis vaults can handle all sorts of assets, not just vanilla tokens. That’s important if Mitosis aims to be a central liquidity hub linking L1s, L2s, etc.
  • A cross-chain ETH LSD (StakeStone Omnichain).
  • A crypto-native stablecoin (Ethena on Ethereum).
  • A Bitcoin LST bridging BTC to EVM (Lombard).
  • A financial NFT platform bridging TradFi-like products and BTC (Solv).
• Enhanced Yields for Users: One selling point of Zootosis is you can deposit assets and simultaneously earn multiple layers of yield:This stacking of yields is very attractive. It aligns with yield-maximizer mentalities in DeFi and likely helped Zootosis reach its TVL caps quickly for these assets.
  • If you deposit STONE (StakeStone ETH), you get ETH staking yield + Zootosis rewards.
  • If you deposit sUSDe, you get ~8% APY from Ethena + Zootosis rewards.
  • If you deposit LBTC/SolvBTC, you get BTC yield + Zootosis.
• Innovation Credibility: By including cutting-edge projects, Morph/Mitosis position themselves as at the forefront of DeFi. They’re not just sticking to old assets; they are embracing new ideas (this can attract more partnerships in future).
• Future Integration: Perhaps Mitosis has deeper plans: e.g., StakeStone or Ethena vaults might deploy on Mitosis chain eventually, or Mitosis might use these assets in its “Expedition” program or Matrix vaults beyond Zootosis. Building relationships via Zootosis could lead to long-term integration.
• Community Rewards Alignment: In Zootosis, the Zoots points are influenced by asset category (main vs secondary have different multipliers) and possibly some bonuses if assets are part of expeditions or promotions. They likely gave a slightly higher boost to secondary assets to incentivize people to deposit those despite their smaller size. And indeed, listing them with limited caps means an early depositor in STONE or sUSDe vault would get a decent share of Zoots (since TVL is limited, each $ counts more Zoots).Ultimately, including these secondary assets made Zootosis more exciting and inclusive, not just for “ETH whales” but for various DeFi enthusiasts. It’s a demonstration of synergy: Zootosis participants help bootstrap liquidity for these projects (since their tokens in vault possibly get exposure and some yield strategies), and in return, those project communities amplify Zootosis.

Conclusion

Zootosis is an innovative liquidity mining event that doesn’t just stick to the usual suspects. By bringing in StakeStone’s liquid ETH (STONE), Ethena’s synthetic dollars (USDe/sUSDe), Lombard’s liquid BTC (LBTC), and Solv’s financial NFTs/BTC staking, Morph and Mitosis created a rich stew of DeFi’s latest innovations within one campaign. Each of these “secondary” assets plays a role:

• StakeStone adds cross-chain ETH staking power and steady yield,
• Ethena adds a decentralized stablecoin with interest, boosting stablecoin options,
• Lombard connects Bitcoin into the vaults, a massive value add bridging the gap between BTC and DeFi,
• Solv injects structured products and further BTC yield possibilities, hinting at sophisticated financial NFTs.

These assets were included because they contribute to a sustainable, diverse liquidity base – aligning with Zootosis’s goal of “growing long-term liquidity”. They also underscore the collaborative ethos in DeFi: protocols working together (Morph, Mitosis, and the secondary asset projects) to create a win-win for liquidity providers and projects alike.

For participants, Zootosis became an opportunity to put idle or underutilized assets (like that STONE or sUSDe you might be holding) to work in a new environment, earning multiple rewards. For the DeFi ecosystem, Zootosis became a showcase of modularity – showing that vaults can handle everything from Ethereum’s staking derivatives to synthetic stablecoins to tokenized Bitcoin.

In many ways, it reflects a maturing DeFi landscape: not just chasing raw yield, but carefully integrating assets that bring their own yield and utility. This is beneficial for long-term health – Zootosis vaults with LSDs and stablecoins likely had stickier liquidity (less mercenary) because those assets naturally earn yield even outside the campaign.

As Zootosis concludes (or possibly evolves into further phases), the involvement of StakeStone, Ethena, Lombard, and Solv sets a precedent for future Mitosis vault expeditions. We can expect that Mitosis will continue to include diverse assets in its liquidity programs, pushing the frontier of what can be done in cross-chain DeFi. It’s an exciting development that these projects – each solving a different piece of the DeFi puzzle (ETH staking, stablecoins, BTC in DeFi, financial NFTs) – are now part of one cohesive effort. That’s exactly the kind of synergy that modular DeFi promises.

Zootosis, with its secondary assets vaults, thus represents a microcosm of the next DeFi cycle: collaborative, cross-chain, yield-bearing, and community-aligned. The participants not only earned short-term rewards, but also helped seed liquidity in some of the most promising new protocols, hopefully contributing to a more robust, interconnected DeFi ecosystem going forward.