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:

  1. Asset Logic – defines how the vault handles assets (e.g., stablecoins vs. volatile assets).
  2. Vault Logic – governs deposit, withdrawal, and accounting rules.
  3. Controller – manages and routes operations between logic contracts and vaults.
  4. Router – handles user-facing operations and integrates with the Mitosis messaging layer.
  5. 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:

  1. Deposit is received via Router on the origin chain.
  2. Asset is bridged into Mitosis via the messaging layer.
  3. Vault mints a wrapped asset (e.g., maAsset) using Asset Logic.
  4. 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

ComponentDescription
VaultRouterEntry point for users to deposit/withdraw
VaultControllerManages vault registration and logic assignment
BaseVaultLogicInterface all vault logic must follow
VaultFactoryDeploys vault contracts
AssetLogicManages minting/burning of wrapped assets
GovernanceControls 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