Mitosis Airdrop Analysis

Introduction

Mitosis has emerged as a game-changer in the blockchain ecosystem, introducing the concept of Ecosystem-Owned Liquidity (EOL) to address the challenges of fragmented liquidity across multiple chains. The image below illustrates how LPs interact with the Mitosis Vault:

Since its launch, Mitosis has achieved remarkable and consistent growth:

• $71.98m Total Value Locked (TVL) as of September 3, 2024. Notice the consistent rise for like four months;

• Consistent expansion across multiple networks including Ethereum, Arbitrum, Scroll, Mode, Blast, Linea, Optimism, and Manta

Mitosis has managed to attract significant liquidity and user engagement through its innovative approach to multi-chain liquidity management. But how did they achieve this? Let’s break it down.

Explain me Mitosis like I’m 5

Mitosis helps people put their digital money to work across many different blockchain networks. Instead of having to move your money around yourself, Mitosis does it for you. You put your tokens (like weETH, weETHs, uniETH or ezETH) into Mitosis, and it gives you a receipt (miAssets).

While Mitosis takes care of your money, making it grow by putting it in the best places, you can earn extra rewards just by holding onto your receipt.

Let’s dive in…

Airdrop Campaign Analysis

We’ll be looking at the Expedition campaign launched by Mitosis, where Liquid Restaking Tokens (LRTs) cross-chain expansion will be the focus. During the campaign, participants can experience Mitosis’ fundamental features: Deposit and Redeem. Deposit assets, receive miAssets, and hold miAssets to earn various MITO Points by Expedition. They can also redeem miAssets, retrieve underlying assets, and deposit assets on other supported networks.

Let’s dive in into how exactly the campaign unfolded;

• Campaign name: Expeditions
• Campaign duration: Multiple campaigns starting from April 25, 2024 (ongoing)
• Campaign allocation: Uses a points system for future $MITO token distribution
• Total Value Locked: $71.98m as of September 3, 2024

We’ll be going through four parts of the expedition campaign;

1. Expedition (weETH)
2. Expedition (weETHs)
3. Expedition (uniETH)
4. Expedition (ezETH)

Each has its own details, start dates, and benefits. At the end, we’ll present a summary of them. Let’s begin by looking at the goal and action of the entire expedition.

Campaign Summary and Rules

Project Goals:

What did Mitosis want to achieve with the campaign? The Mitosis Expedition campaigns aimed to leverage the power of decentralised finance to increase network activity and adoption across multiple blockchain networks through targeted liquidity provision and community engagement strategies. We can summarise the goals into the following:

1. Increase the Total Value Locked (TVL) across multiple networks: By encouraging deposits of supported assets.
2. Attract and retain liquidity providers: Through incentives that reward holding and participation.
3. Promote cross-chain liquidity distribution: To demonstrate and capitalise on the multi-chain functionality of the platform.
4. Encourage community growth and engagement: By leveraging referral systems and social media connectivity.
5. Create liquidity stickiness: To ensure the continued utility and value retention post-campaign.

Desired User Actions:

What did Mitosis want the users to do? To meet these goals, the campaigns were meticulously designed to facilitate the following actions from users:

1. Deposit supported assets (weETH, weETHs, uniETH, ezETH) into Mitosis: This action aimed to directly increase the TVL across the supported networks, providing the platform with the necessary liquidity to facilitate smooth asset exchanges and interactions.
2. Hold miAssets (miweETH, miweETHs, miuniETH, ezETH) to earn rewards: By holding these assets, users contribute to the liquidity and stability of the platform, benefiting from rewards that incentivize prolonged participation.
3. Participate across multiple supported networks: This broadens the usage and adoption of the platform’s capabilities, promoting a more robust and integrated multi-chain ecosystem.
4. Refer new users and actively engage on social media platforms: Community growth is critical for sustained platform success, leveraging network effects to increase user base and engagement.
5. Accumulate MITO Points to benefit from future governance and tokenomics structures: This ensures that users are invested in the long-term success of the platform, aligning user incentives with those of the platform’s governance.

The table below encapsulates the main goals of the Mitosis Expedition campaigns, the actions users are encouraged to take, and the rules or incentives in place to achieve these goals.

Now we’ll look at the rules of the expeditions one at a time;

Expedition (weETH)

First is the Expedition (weETH) campaign focused on Ether.Fi’s weETH and started on the 25th of April 2024.

Campaign Rules

The Expedition (weETH) campaign is structured into four Epochs, each with a weETH deposit limit except for the fourth Epoch.

The primary aim for users is to accumulate miweETH, a derivative token representing locked weETH, which participants can hold to earn MITO Points (weETH). These points eventually contribute to future governance token ($MITO) airdrops and other benefits.

Here is the list of each Epoch with a network breakdown with their respective MITO Points (weETH) Boosts:

Participating in the Expedition

Now for users to acquire miweETH (the token representing the weETH locked in Mitosis), users will deposit their weETH (or ETH) in Mitosis’ network and then get miweETH.

During the expedition, users can either hold their miweETH for MITO Points or Redeem them. Holding miweETH in any of the supported networks (from the above table) earns MITO Points (weETH).

As you’d observe from the table, L2 networks have a higher Boost multiple (1.1x against 1.2x) than Ethereum.

Additionally, each network has a different Epoch deposit threshold and Epoch Boost. Therefore users made their own Expedition (weETH) strategy to maximize Boost multiple and MITO Point (weETH) earnings.

If a user decides to Redeem their miweETH instead, you basically give it back to them (they call this burning) and your previously deposited weETH is transferred back to you.

Mitosis Expedition (weETH) Participation Benefits

Expedition (weETH) offers multiple ways for participants to earn rewards and set themselves up for future benefits. By holding and managing miweETH, users can accumulate MITO Points, gain additional rewards, and be part of a growing DeFi ecosystem. Here’s a concise overview of them:

Participation Benefits:

MITO Points (weETH):

• Earn by Holding miweETH: Simply hold miweETH to accumulate MITO Points. These points are your gateway to future $MITO token airdrops.
• Boost Your Earnings: Increase your MITO Points by holding miweETH longer, completing missions, earning badges, and participating in boosts. All these activities contribute to maximizing your rewards.

EigenLayer Points:

• Keep Earning: miweETH holders continue to earn EigenLayer Points, just as they would if they held weETH directly.

EtherFi Loyalty Points (2x):

• Double Your Points: Participate in Expedition (weETH) to keep earning EtherFi Loyalty Points with a 2X boost. An additional 3X boost is available for a limited time during Epoch 3.

Mitosis Vault:

• Maximized Yield: The Mitosis Vault optimizes yields by distributing locked assets across multiple networks. By holding miAssets, you gain exposure to multi-chain DeFi opportunities and participate in on-chain governance to influence the Vault’s strategies.

Protocol Rewards:

• Extra Rewards: Earn additional rewards by participating in Expedition on specific networks like Linea LXP-L and Scroll Mark.

MITO Points (weETH):

Now more information on MITO Points…

What Are MITO Points?
MITO Points are rewards you earn by holding miweETH during the Expedition campaign. These points make you eligible for future Mitosis governance token ($MITO) airdrops and are a key part of the reward structure.

How to Earn and Boost MITO Points:

Daily Reward Scheme:
Your daily MITO Points are calculated based on your miweETH balance and boosted by various factors such as:

• Chain Boost: Get extra points by depositing in certain networks.
• Holding Duration: The longer you hold miweETH, the higher your point multiplier.
• X Boost: Connect your X (Twitter) account for an additional boost.

Additional Boosts:

• Epoch Boost: Earn multipliers based on when you started holding miweETH.
• Referral Boosts: Earn more by referring friends, who also get a boost.
• Bracket Boost: Increase your points based on the total miweETH you hold across all networks.

Bonus Points:

• Referral Bonuses: Earn extra MITO Points when your referred friends generate points.
• Community Redistribution (CR): Points are redistributed from those who redeem early to those who hold longer, benefiting the committed participants.

Mitosis Badges:

• Earn More Points with Badges: Complete specific tasks and milestones to earn badges that grant additional MITO Points. There are 5 Onboarding Badges to welcome the participants to the Expedition (weETH) campaign (image below)

Leader Rewards & Tiers:

• Top Performers Recognized: The top contributors in the Expedition earn exclusive rewards and are categorized into Tiers, with higher Tiers offering more benefits, like increased Community Redistribution rewards. Check the breakdown of leaders and their rewards below;

Thoughts and Analysis of the Rules

The campaign’s rules were designed to maximize participant engagement and ensure a steady accumulation of liquidity across networks. By rewarding long-term holding and strategic participation with boosts, the campaign aligns user incentives with the project’s broader goal of expanding cross-chain LRT adoption. The Community Redistribution mechanism discourages premature withdrawals, further promoting liquidity retention.

Results of Expedition (weETH)

From the date the expedition (weETH) commenced till the next expedition, the TVL(ETH) of Mitosis increased from 960ETH to 23,685ETH, which is a 2367.19% increase and that shows how positive the expedition was.

Expedition (weETHs)

Expedition (weETHs) kicked off on July 3rd (source). Launched alongside the weETH expedition.

Campaign Rules

Expedition (weETHs) is similar to the previous weETH, Expedition (weETHs) has four epochs and accumulates miweETHs, a derivative token representing locked weETHs, which participants can hold to earn MITO Points (weETHs). But it has a different breakdown and boosts (image below)

A major difference from the previous expedition is that Expedition (weETHs) ONLY supports Ethereum as the only chain used to make deposits. Again, during Expedition (weETHs), users can either hold their miweETHs for MITO Points (weETHs) or Redeem them. Holding miweETHs on Ethereum network earns them MITO Points (weETHs). The process of redeeming weETH remained the same.

The second Expedition (weETHs) builds on the first, offering participants another chance to earn MITO Points, benefit from continued platform integrations, and engage deeply with the Mitosis ecosystem. The Expedition provided a rewarding opportunity for users to grow their involvement in the DeFi space, with multiple avenues to maximize gains and secure future benefits.

Results of Expedition (weETHs)

From the date the Expedition (weETHs) commenced on the 3rd of July till when the next expedition was to commence (11th July), the TVL(ETH) of Mitosis increased slightly from 23,946 ETH to 26,203 ETH which is a 9.43% increase (image below) but that’s understandable considering the short period of time.

Expedition (uniETH)

The next expedition released is the Expedition (uniETH), launched on July 11, 2024 alongside the other weETH and weETHs.

Campaign Rules

Expedition (uniETH) also had four epochs, accumulates miuniETHs, a derivative token representing locked uniETHs and MITO Points (uniETH) but different network breakdown and boosts.

For this expedition, 4 chains are supported (Ethereum, Arbitrum, Scroll, and Linea) but different chain boosts (as shown in the table above). The process of depositing to get MITO Points remains the same and also the process of holding or redeeming miuniETH.

The Expedition (uniETH) is designed to build upon the success of the previous expeditions, providing participants with another opportunity to earn MITO Points, engage with the Mitosis platform, and benefit from continued participation in the ecosystem.

Thoughts and Analysis of the Rules

The Expedition (uniETH) campaign strategically focuses on building liquidity across both Ethereum and L2 networks, supporting Bedrock’s uniETH integration into the Mitosis ecosystem. The use of boost multipliers, particularly for L2 networks, incentivizes users to spread liquidity across chains, achieving the campaign’s cross-chain liquidity goals. The Community Redistribution mechanism further strengthens liquidity retention, discouraging early exits and promoting sustained participation.

Results of Expedition (uniETH)

From July 11, 2024 when Expedition (uniETH) started till August 13, 2024 when the next expedition launched, the TVL of uniETH rose from 26,203 ETH to 27,570 ETH (5.22% Increase)

Analysis of the Expeditions (weETH, weETHs, uniETH)

Let us now look at the data around (weETH, weETHs, uniETH) expeditions though they are still ongoing;

According to Dune, a total of 27k tokens with a value exceeding 66.7M was deposited from 135,384 stakers.

From the data, weETH alone accounted for an astonishing 23,339 (84.4%) of the total deposited LRTs as well as 128,519 (94.9%) of the stakers.

A total of 8 networks were involved in staking (Ethereum, Arbitrum, Optimism, Linea, Blast, Mode, Manta and Scroll). Let’s look at how the stakers distributed themselves across the various networks.

You can see from the table above that LInea and Scroll accounted for 69.50% of the total stakers. Note that some stakers deposited on Hyperlane (on Mitosis).

Let’s now take a look at the rise in stakers from the beginning of the first expedition to the last one

And not just the number of stakers that grew. As the expeditions continued, there was also a rise in the TVL(ETH) of Mitosis (the blue shade).

Now moving to the last of the expeditions as of the time of this writing;

Expedition (ezETH)

Last is the Expedition (ezETH), launched on August 13, 2024. Launched alongside the weETH, weETHs, and uniETH expeditions.

Campaign Rules

Expedition (ezETH) also had four epochs and accumulates miezETH, a derivative token representing locked uniETHs and MITO Points (ezETH) but different network breakdowns and boosts.

Holding 0.001 or more miezETH during an Epoch makes you eligible for that Epoch’s Epoch Boost until the end of the Expedition (ezETH) campaign. Only one Epoch Boost (with the highest multiple) gets applied to a participant’s address.

To get ezETH for this expedition, users will have to visit Renzo Restake or Get via DeFi. After acquiring them, they can deposit them into Mitosis.

In this expedition, 5 chains are supported (Ethereum, Arbitrum, Linea, Mode, and Blast) but different chain boosts (as shown in the table network table above).

During Expedition (ezETH), you can either hold your miezETH for MITO Points (ezETH) or Redeem them. Holding miezETH on Ethereum network earns you MITO Points (ezETH). L2 networks have a higher Boost multiple than Ethereum.

Results of the Expedition (ezETH)

At the start of the expedition, the TVL was 27,570 ETH and as of September 15 is 26,507 ETH. That shows a slight dip in the TVL.

From our last expedition, we had 29k tokens with a value exceeding 80M deposited from 126,648 stakers but it has dropped to 28.7k tokens with a value of 75M (image below)

While things seem to be going downward, Mitosis is not done yet, hence the data isn’t complete. We cannot yet rule out the potential effect of the new expedition until it has finished.

All Expeditions Summary

The table below summarizes all the expeditions for easy comparison and understanding;

Expedition Feedbacks

Now we’ll look at some posts on X (Twitter) and Telegram about the Mitosis Campaigns so far. Initially, reactions were more positive but as Mitosis continues to release more expeditions, users are becoming irritated.

First, the positive responses;

But recently, users are becoming impatient;

Conclusion

Mitosis has introduced an effective approach to multi-chain liquidity management with its Ecosystem-Owned Liquidity model. Through its Expedition campaigns, Mitosis has successfully increased its TVL and user engagement across multiple networks.

Following the most recent expedition release of ezETH, the Mitosis community is torn in two between those with a long-term interest in mind and those just mostly interested in the airdrop.

As Mitosis approaches its Token Generation Event (TGE), the team faces a critical juncture. They must address the challenge of aligning community expectations with the protocol’s sustainable growth objectives. This will likely require:

• Enhancing communication about the project’s long-term value proposition
• Implementing incentive structures that reward sustained participation over speculative behaviour

Ultimately, Mitosis’s success will depend on its ability to convert speculative interest into real adoption and utility. By fostering a community that values the protocol’s fundamental strengths, Mitosis can build a more resilient foundation for its post-TGE future and solidify its position in the competitive DeFi landscape.

References

1. https://defillama.com/protocol/mitosis
2. https://docs.mitosis.org/docs/expedition/intro
3. https://docs.mitosis.org/docs/expedition/expedition-weeth/intro
4. https://docs.mitosis.org/docs/category/expedition-weeth
5. https://docs.mitosis.org/docs/expedition/expedition-weeth/participation-benefits
6. https://docs.mitosis.org/docs/category/all-about-mito-points-weeth
7. https://docs.mitosis.org/docs/expedition/expedition-weeth/all-about-mito-points-weeth/mitosis-badges
8. https://docs.mitosis.org/docs/expedition/expedition-weeth/all-about-mito-points-weeth/leaders
9. https://dune.com/queries/3970012/6680710
10. https://docs.mitosis.org/docs/category/expedition-weeths
11. https://docs.mitosis.org/docs/category/explore-miweeths
12. https://docs.mitosis.org/docs/category/expedition-unieth
13. https://docs.mitosis.org/docs/category/expedition-ezeth
14. https://app.renzoprotocol.com/restake
15. https://app.renzoprotocol.com/defi
16. https://app.mitosis.org/?asset=ezETH
17. https://dune.com/lydiapita/mitosis-vault
18. https://x.com/binhnikan/status/1805271208436592681
19. https://x.com/jrwhale/status/1766363471837536540
20. https://x.com/Luke_mitosis/status/1814363427873403136
21. https://discord.gg/mitosis
22. https://x.com/ElizabethK83026/status/1827060564578664806
23. https://x.com/lucaruzza_92/status/1826684137417175329

Disclaimer:

The information provided in this article is for informational purposes only and reflects the research and opinions of One Click Labs. It should not be considered financial, legal, or investment advice. Airdrop participation involves risks, including potential loss of funds, and readers are encouraged to conduct their own due diligence. One Click Labs does not endorse or guarantee the success of any project mentioned and is not liable for any losses incurred due to airdrop participation or reliance on the information provided.