Understanding Vault Liquidity Frameworks (VLFs) in Mitosis
Mitosis introduces a modular approach to managing liquidity through Vault Liquidity Frameworks (VLFs) — a foundational system that allows developers and protocols to standardize and extend how assets are deposited, wrapped, and utilized within the Mitosis ecosystem.
🧱 What Is a Vault Liquidity Framework?
A Vault Liquidity Framework is a system of contracts and interfaces designed to handle:
- Asset deposits
- Minting of derivative tokens
- Asset accounting
- Governance and logic upgrades
In short, VLFs abstract the logic and rules behind how a vault behaves and how it interacts with user deposits, enabling consistent, extensible, and programmable asset behavior on Mitosis.
🛠️ Architecture Overview
Each Vault in Mitosis is governed by a Vault Liquidity Framework (VLF). This framework dictates the vault's behavior via:
- Asset Logic – defines how the vault handles assets (e.g., stablecoins vs. volatile assets).
- Vault Logic – governs deposit, withdrawal, and accounting rules.
- Controller – manages and routes operations between logic contracts and vaults.
- Router – handles user-facing operations and integrates with the Mitosis messaging layer.
- Governance – enables gMITO holders to vote on logic upgrades or parameter changes.
This separation of concerns allows vaults to be updated or extended without changing their user-facing interfaces or resetting user balances.
🔁 Deposit & Minting Flow
When a user deposits an asset (e.g., ETH or USDC) into a vault, the VLF governs the following flow:
- Deposit is received via Router on the origin chain.
- Asset is bridged into Mitosis via the messaging layer.
- Vault mints a wrapped asset (e.g.,
maAsset
) using Asset Logic. - Wrapped asset becomes available for use within Mitosis applications.
This process is deterministic and governed by Vault and Asset Logic defined in the VLF.
📦 Custom Vault Logic
Developers can create custom vault logic contracts by inheriting from base vault logic types. For example:
BaseVaultLogic
: the abstract contract all logic must inherit from.StandardVaultLogic
: the default vault behavior.EOLVaultLogic
: logic for ecosystem-owned liquidity.- Custom implementations: e.g., logic for yield farming, tokenized LP positions, or gaming integrations.
Each vault is assigned a logic contract through governance, and these contracts can be upgraded without affecting existing vault state.
🔐 Governance Control
Vaults and their logic are governed via Mitosis’s onchain governance:
- gMITO holders can propose and vote on logic upgrades.
- Vault logic assignments are controlled by the VaultController.
- Logic contracts must be whitelisted by governance before assignment.
This ensures that vault behavior is transparent, upgradeable, and community-controlled.
🧩 Router and Messaging Layer
The VaultRouter contract provides a unified interface for all vault operations. It handles:
- Deposit and withdrawal entrypoints
- Communication with remote chains via the Mitosis Messaging Layer
- Coordination between chains and the VaultController
Routers are deployed on every supported origin chain and on Mitosis, ensuring seamless cross-chain UX.
📚 Key Contracts
Component | Description |
---|---|
VaultRouter | Entry point for users to deposit/withdraw |
VaultController | Manages vault registration and logic assignment |
BaseVaultLogic | Interface all vault logic must follow |
VaultFactory | Deploys vault contracts |
AssetLogic | Manages minting/burning of wrapped assets |
Governance | Controls upgrades and whitelisting of logic |
All contracts follow modular patterns and are extensible by design.
🌐 Conclusion
Vault Liquidity Frameworks (VLFs) are a critical component of the Mitosis modular liquidity layer. By cleanly separating asset logic, vault behavior, and governance control, VLFs allow developers to build powerful, upgradeable, and chain-agnostic liquidity systems.
Whether you're building a new AMM, a yield strategy, or a gamefi protocol — VLFs give you a flexible base to innovate with.
This is how Mitosis programmable liquidity, Mitosis Matrix Vaults work.
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📖 For full technical details and integration examples, visit the official developer documentation: docs.mitosis.org/developers
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