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🧬 Mitosis Vaults — A Simple Way to Earn More with Your Tokens

Mitosis vaults are special smart contracts where users can safely deposit tokens (like ETH or USDC) and earn rewards automatically.

This is the rise of programmable liquidity.

When you deposit into a vault:

  • You get a vault token (like maETH/miETH) that proves you own a share of the vault.
  • Your deposited tokens are used in strategies that generate yield.
  • You can later withdraw your tokens, along with the rewards.

These vaults are a key part of the Mitosis Vault Liquidity Framework (VLF).

🟢 How Depositing Works

When you want to earn with your crypto:

  1. First, the vault checks how much you’re allowed to deposit using built-in limits (called “caps”).
  2. You send your tokens to the vault.
  3. The vault gives you special vault tokens (like maUSDC/miUSDC) to represent your share.
  4. The vault passes your tokens to a strategist, who puts them into yield-earning DeFi strategies.

That’s it! Once you’re in, your tokens start working for you.

Mitosis vaults follow a technical standard called ERC-4626, which means they are compatible with other DeFi apps and protocols.

🔴 How Withdrawals Work (Reclaim Queue)

Taking your tokens back involves a 3-step process with a waiting period. This process keeps the system safe and stable. It’s managed by something called the Reclaim Queue.

1️⃣ Step 1: Reclaim

You request to withdraw. The vault doesn’t send you the tokens right away. Instead:

  • Your request is added to a waiting list.
  • Your vault tokens are marked for withdrawal but not yet burned.

2️⃣ Step 2: Waiting & Reserve

During the waiting period (for example, 7 days):

  • A strategist sets aside the needed tokens from the vault's idle funds.
  • Once your tokens are reserved, your vault tokens are burned.

3️⃣ Step 3: Claim

After waiting and once your tokens are ready, you can claim them back.

  • You go to the Reclaim Queue and finalize the process.
  • You get your original tokens (like ETH or USDC) back to your wallet.

⏳ Why Is There a Delay?

The withdrawal delay is intentional and provides several benefits:

  • 🛡️ Protects the strategies from being disrupted by sudden withdrawals.
  • 🔒 Prevents people from quickly moving in/out to game the system.
  • 📈 Helps vaults perform better by giving strategists time to plan and adjust.
  • ⚖️ Ensures fairness and long-term health of the system.

In short: it keeps the ecosystem safe, stable, and fair.

🔑 Vault Features Summary

FeatureWhat It Means
ERC-4626 compatibleWorks with other DeFi apps easily.
Vault tokens (maX)You always know how much you own in the vault.
Deposit capsLimits are set to avoid overloading the vault.
Reclaim QueueWithdrawals go through a safe, delayed process.
Strategist-managedProfessionals help your assets earn more safely.

✅ Recap

  • You deposit tokens → get vault tokens in return.
  • Your assets are used in yield strategies by strategists.
  • When ready to leave, you go through a 3-step withdrawal process (reclaim → wait → claim).
  • Vaults are secure, DeFi-compatible, and designed for long-term performance.

Whether you’re a passive user or DeFi power user — Mitosis vaults offer a reliable way to earn yield while staying safe.

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