Red Pill Revolution Mitosis and Theo Reboot Matrix

The collaboration between Mitosis and Theo unites innovative solutions in decentralized finance (DeFi) and enables users to profit simultaneously from the products of both ecosystems. Theo offers its stablecoin model thUSD, which operates on multiple blockchains, features a robust risk management system (Risk Engine), and a real-time accounting module (Accounting Engine). Meanwhile, Mitosis allows asset deposits via the Matrix Straddle Vault, providing additional bonuses and profits from Theo tokens and MITO Points (weETH).

In this article, we will cover:

1. Overview of the Theo project (thUSD, Deposit Vault, Risk Engine, Accounting Engine, roadmap, audit by Code4rena and Zellic).
2. How the Matrix Theo Campaign works in Mitosis (detailed explanation of the Straddle Vault strategy, deposit stages, rewards, etc.).
3. Step-by-step instructions on how to make a deposit within this collaboration and the benefits that can be obtained.

1. Overview of the Theo Project

Theo positions itself as an infrastructural layer for DeFi applications, offering the thUSD stablecoin and a suite of tools for managing liquidity and risks.

1.1. Main Components of Theo

1.2. Audits and Trust in the Project

• Code4rena Audit: Theo successfully passed an audit by Code4rena, a well-known vulnerability and bug bounty platform.

Zellic Audit (in progress): The audit by Zellic is currently underway, further confirming the team’s serious approach to security.

1.3. Theo Technical Roadmap

Below are the key milestones for the development of Theo’s products (as of March 2025):

Thus, the public release of the Straddle module has already taken place. The main focus now is on launching thUSD and integrations with third-party DeFi applications.

2. Overview of the Theo and Mitosis Partnership: Matrix Theo Campaign

2.1. What is Mitosis and the Matrix Straddle Vault

Mitosis is a decentralized protocol designed to optimize cross-chain liquidity and liquid restaking by enabling seamless movement of assets across multiple blockchain networks. It leverages programmable liquidity and modular blockchain architecture to enhance capital efficiency, ensuring liquidity is dynamically allocated where it is needed most.

• Matrix Straddle Vault — one of Mitosis’ products, where users can deposit assets (e.g., miweETH or weETH) and earn profits from multiple sources:
  • Basic profitability from lending/borrowing (Aave, Hyperliquid, etc.).
  • Theo tokens as rewards for participating in the special campaign (Matrix Theo Campaign).
  • MITO Points (weETH) — native bonuses from Mitosis.

2.2. Matrix Theo Campaign: Key Facts

1. Campaign Start: March 13, 2025 at 16:00 UTC.
2. Supported Networks: Ethereum, Arbitrum, Linea (for depositing weETH or miweETH).
3. Initial Pool Reward: 0.07% of the total number of Theo tokens, with the possibility of increasing depending on TVL (Total Value Locked).
4. Operating Principle:
   • Deposit miweETH/weETH → automatically invested into the Straddle Vault → assets are placed on Aave for USDC lending → USDC is used on Hyperliquid to open a position (short leg) → monitoring ETH funding with a delta-neutral approach.
   • Collateral and risk management are handled automatically, with conservative parameters.
   • Withdrawals are synchronized with Round cycles (approximately every 2 days).

2.3. Phases Structure and Deposit Limits

The campaign is divided into 4 phases. In each phase, deposit limits for each network are set, and the phase ends either when the limit is reached or after a specified period.

Below is an example of the limits for the first three phases:

Note: If, during your deposit, the limit is sharply reduced due to simultaneous deposits from other users, part of your deposit may not be entered into the Vault. If this results in a loss of MITO Points or Expedition Boost, contact Mitosis support with your wallet and deposit date—the team will help recover the lost amount.

3. How to Participate in the Matrix Theo Campaign

Limited Access and Phases

Currently, access to the Matrix Theo Campaign is restricted. The campaign is divided into 4 phases, each with its own eligibility criteria (Deposit Eligibility Requirement), deposit limits (Deposit Cap), and duration.

Briefly, the phases can be described as follows:

Note: if you do not meet any of the criteria from phases 1, 2, or 3, you will have to wait for phase 4, where access is open to everyone without restrictions and without deposit limits.

3.1. Step 1: Preparing Assets (weETH or miweETH)

• If you have miweETH on the Scroll, Mode, or Blast networks, and you want to join the campaign (which operates on Ethereum, Arbitrum, Linea), you need to:
  1. Redeem miweETH through Expedition.
  2. Bridge the obtained weETH to the required network (Ethereum, Arbitrum, or Linea).
  3. Make a weETH deposit into the Matrix Straddle Vault.
• If you already have weETH directly on Ethereum, Arbitrum, or Linea — you can make a deposit immediately via the Mitosis (Matrix) frontend.

3.2. Step 2: Deposit into the Matrix Straddle Vault

1. Access the Matrix interface (via the Mitosis website).
2. Select the network where you have weETH/miweETH.
3. Make the deposit:
   • Confirm the first transaction (approve).
   • Confirm the second transaction (actual deposit).
4. Consider the time constraints: both transactions should preferably be made within the same UTC day, before 11:55 PM UTC, to preserve your Expedition Boost.

3.3. Step 3: Waiting for Inclusion in the New Straddle Vault Round

• After the deposit, it takes about ~2 days for the assets to be activated in a new Round (Straddle Vault cycle).
• maweETH (Theo) becomes available for claim only after this cycle ends.
• Theo Straddle Yields (income from Aave + Hyperliquid) begin to accrue from the moment your deposit officially enters the strategy (at the start of the new Round).

3.4. Step 4: Receiving Rewards

1. MITO Point (weETH) and Theo tokens (until TGE) start accruing immediately after the deposit.
2. Theo Straddle Yields (specifically from the Vault activity) are accrued only after you receive maweETH (Theo) (after 2 days, when a new Round starts).
3. After the TGE (Token Generation Event) of Theo, your final amount of Theo tokens will be determined using the TWAB (Time Weighted Average Balance) method over 6 months.

3.5. Withdrawing Funds

• Withdrawals can be initiated at any time, however:
  • Funds are released only at the nearest Roll (approximately every 2 days).
  • If you withdraw funds before TGE, you will lose up to 20% of the accumulated Theo tokens and MITO Points (weETH) (they will be redistributed among the remaining participants).The penalty calculation formula depends on the number of days (diffDays) during which you continuously held maweETH (Theo):
    • You forfeit a maximum of 20% of the accumulated Theo tokens and Mitosis points.
    • This “penalty” portion is distributed among the other participants who remain in the campaign.

The penalty calculation formula depends on the number of days (diffDays) during which you continuously held maweETH (Theo):

• Quick withdrawal exception: if you initiate the withdrawal before your deposit is included in the new Straddle Vault Round, you will be able to withdraw funds instantly, without the 2-day waiting period.

4. Boosts and Bonuses

4.1. Expedition Boost (for MITO Points)

• If you already have an Expedition Boost (e.g., Holding Duration Boost or Chain Boost), you will not lose it when transitioning to Matrix, provided that:
  1. Both deposit transactions (approve and actual deposit) are completed before 11:55 PM UTC on the same day.
  2. Your total balance (miweETH + maweETH (Theo)) continues to meet the Boost requirements (for example, a minimum of 0.1 miweETH).
• If you withdraw funds from Matrix and return them to Expedition on the same day (before 11:55 PM UTC), your Expedition Boosts are preserved, provided that the balance again meets the Boost conditions.

4.2. Theo Token Boost

• Collective Growth Rewards (Community Milestone Bonuses): if the total TVL in the campaign exceeds certain thresholds, the reward pool increases beyond 0.07% of the total Theo supply.
• Holding Duration Boost: additional percentages for continuous holding of >= 0.1 maweETH (Theo). It increases by 0.05% daily.
• Bracket Boost: accrued depending on the total amount of maweETH (Theo) across all supported networks.

4.3. Boosts Related to Both Theo and MITO Points

• OKX Wallet Boost: +0.5% multiplier (you must make your first deposit transaction via OKX Wallet).
• Morse Holder Boost: if your wallet contains a Morse NFT, an automatic +1% is added to rewards in Theo tokens and MITO Points (weETH).

5. Summary and Advantages of the Mitosis x Theo Collaboration

1. Convenient multi-chain solution: users can use assets from various networks (weETH or miweETH) and deposit them into the Matrix Straddle Vault.
2. Additional profitability: besides the basic yield (Aave + Hyperliquid), users receive:
   • Theo tokens (via TWAB)
   • MITO Points (weETH)
   • Expedition Boost, Theo Boost, and other multipliers.
3. Flexible risk management: the delta-neutral strategy, real-time risk calculations (Risk Engine), and audits by Code4rena and Zellic ensure trust and reliability.

If you are looking for a stable yet highly profitable way to earn in DeFi, the collaboration between Mitosis and Theo is one of the most interesting options on the market.

Join the Community

• Mitosis X (prev. Twitter)
• Mitosis Discord
• Theo Discord

Good luck in the Matrix Theo Campaign!