Ways Mitosis can change traditional Banking system forever.

This will be shedding light into the idea, concept, DeFi history and real life applicable use case of Mitosis rather than the product technicalities, the huge potential that lies within this incredible framework and it's usecases in the real world.

DeFi that predates the creation of the blockchain

Although DeFi was born out of the creation of blockchain technology, it however predates Crypto and blockchain technology, there has always been a yearning for financial freedom and flexibility, and as early as the 8th century, Hawala, a system originating from the Middle East and South Asia was invented, it was an alternative to traditional banking systems and it was used to send and receive money.

Also during early 4000-3000 BCE, communal resource pools in Mesopotamia, Egypt and Indus Valley where crops and farm products are stored(pools) by workers(Liquidity providers) for collective use in days of famine and drought and was controlled by community norms rather than central banks. This was also another mirror idea of what we call DeFi today.

What is Mitosis?

In the digitized world today, there is a need for a more complex and beneficial financial system for everyday users and that is where Mitosis comes in, unlike the traditional DeFi we are accustomed to, where your assets are illiquid, Mitosis creates a whole new opportunity and environment for your assets to work and be functional while still holding your pool positions, as of now it can only be possible with Restaked assets but soon it will adopt more asset classes. “After establishing the new norm of multi-chain DeFi through LRTs, Mitosis will apply the same structure to other assets and imbue them with underlying yields.” - docs.

To better understand Mitosis in a less technical context, picture it as a two way path, one where you move collectively with a group of people (EoL), and another where you move alone (Matrix), now there are some underlying differences with this illustration but looking at it from the POV of users this is one way to understand it, this is to showcase how Mitosis can play a key role in the future of traditional finance.

How can Mitosis be applicable in the real world?

In the world today, robust financial application model is at the forefront of innovators idea workshop to level the playing field for small scale investors and everyday market players, this is a very key part in growing as a digital financial world, and Mitosis aims to bring us to this inevitable junction of our financial journey. How can they achieve this?

1.) Tokenize illiquid IRL assets

Traditional DeFi mirrors the Traditional financial system where assets are locked in-form of bonds and Savings accounts that are; Illiquid and hard to access, Controlled by government or Brokers.

The Mitosis model of liquid pool functionality inspires industrial scale designs where financial institutions opt to tokenize Illiquid assets such as Private equity stakes, Real Estate and Corporate bonds into yield generating units.

2.) Democratization access in Traditional Finance system

With Mitosis’s Ecosystem owned Liquidity (EoL) framework, retail investors can get access to the best yields which was only made available to private or institutional players. This model can also be applicable to current traditional institutions.

i.) Private Equity Investments (EoL framework); Large investors or institutions often participate in Private Equity(PE) investments and this is only available for  individuals with very high networth and network, small retailers are never considered during PE investments, this can change with the Mitosis EoL framework where pool funds of LPs are collectively utilized to negotiate access to these PE investments, thereby applying the democratization process of mitosis on TradFi.

ii.) Venture capital funding (VC); This is pretty straightforward, With the Mitosis EoL framework, Retailers can also have access to invest in VC funding rounds of their preferred projects which was formerly only accessible as well to large institutions and high level network.

3.) Treasury & Institiutional Asset Management

In the Traditional world, Largescale Investors and corporate treasuries face the problem of liquidity fragmentation, all capitals are idle and also very complex to manage, this can be solved with the Mitosis framework.

With Mitosis’s Automated management of assets, Investors and Corporate Treasuries can allocate assets across pools to maximize not only yield of the asset but have a secure and scalable network of their assets.

Conclusion; Mitosis although built for Web3 mechanisms can also be applicable in the real world and that is where real potential lies,

To DeFi currently, it can act as another layering of yield on your Restaked tokens(currently applicable). So the bar of growth for mitosis is very high when you consider its potential as listed, the need for it, and also the dedication of the team to direct Mitosis fervently, This is just the beginning but very convincing signs already so we should definitely expect more to come from this rapidly growing Protocol.