The Liquidity Manifesto Explanation: Mitosis and the Future of Transparent DeFi

Introduction: A Crisis Hidden in Plain Sight

Decentralised finance (DeFi) has long promised a world of open, permissionless markets. On the surface, the blockchain appears to deliver on that promise—anyone can trade, provide liquidity, or deploy smart contracts. However, beneath this veneer of transparency lies a growing problem that threatens DeFi’s core ideals: fractured, opaque liquidity.

In a world where code is law, hidden systems of privilege still flourish. Private deals, preferential yields, and backdoor arrangements between elite protocols and large liquidity providers have created an unspoken hierarchy. This isn’t decentralization—it’s shadow finance, reborn on-chain.

The Liquidity Manifesto Explanation

The Liquidity Manifesto is a call to action from the Mitosis protocol, which lays bare this systemic imbalance. Today, the DeFi market operates with two levels of knowledge:

1. The surface: Public pools, APYs, and token incentives are visible on-chain.
2. The depths: Off-chain agreements, custom yield deals, and tailored vault access known only to a select few.

Retail users and smaller LPs participate in markets without the full picture. Their trades and positions are based on partial truths, while large players quietly move capital behind the scenes. This isn’t just unfair, it’s structurally unsound.

The Manifesto presents a clear path forward: liquidity must become programmable, transparent, and verifiable.

This doesn’t mean regulation or centralization. It means building infrastructure that ensures all liquidity flows are visible, auditable, and composable—not subject to backroom negotiations.

Mitosis is building that infrastructure:

• miAssets and maAssets: Tokenized representations of liquidity positions across chains, with built-in yield logic.
• Programmable Vaults: On-chain strategies where logic governs outcomes, not private deals.
• Cross-Chain Liquidity Markets: Real-time execution across Ethereum, Arbitrum, Mode, Mantle, and more.
• Ecosystem-Owned Liquidity (EOL): Community governance over capital flows and rewards distribution.

Together, these tools shift liquidity from a game of who-you-know to a network of what-you-build.

Just as Bitcoin decentralized money and Ethereum decentralized contracts, Mitosis aims to decentralize yield. In the current system, yield is often determined through private negotiations. In the new paradigm, yield becomes a public outcome of transparent logic and aligned incentives.

By removing intermediaries and encoding strategies into smart contracts, Mitosis ensures every LP, regardless of size or reputation, competes on equal footing. Capital flows not to those with the best connections, but to those who build the most effective strategies and contribute most to the ecosystem.

The Call to Action

The Liquidity Manifesto is more than rhetoric; it’s a blueprint for the next phase of DeFi. It invites liquidity providers to reject the shadows of privilege and embrace a system where every strategy, reward, and risk is on-chain and open for inspection.

"Arise, liquidity providers of the world. You have nothing to lose but your information asymmetry."

The revolution will not be televised.
The revolution will be on-chain.

About Mitosis

Mitosis is a Layer 1 blockchain focused on programmable liquidity and cross-chain yield infrastructure. With innovations like miAssets, EOL governance, and a robust multi-chain presence, Mitosis is pioneering the next evolution of DeFi where liquidity is open, transparent, and composable by design.

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• Website: mitosis.org
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