Key Mechanisms & Concepts
Last updated
Last updated
Components:
Liquidity Providers (LPs): Entities seeking yield on liquidity.
Liquidity Seekers (LSs): Entities paying incentives to rent liquidity.
Gateway Contracts: Immutable contracts defining how assets are supplied and utilized. The gateway to Mizu, accepting deposits in whitelisted assets and serving as canonical bridges.
Auto-Yield Vaults (vaults): Automated vaults that generate yield. Modular risk-minimised programmatic liquidity managers that utilize LP deposits to generate yield from integrated EVM, nonEVM and altVM chains
Mirror Tokens: Yield-bearing tokens representing 1:1 ownership of assets supplied into gateways that interweave Mizu and external blockspace. These tokens are always redeemable 1:1 at anytime and are composable with protocols on Mizu MoveVM.
Shadow Tokens: This is the yield token backed 1:1 with the yield generated in the native chain. Each user holding tokens in the Mizu Chain will receive a portion of the yield generated in the peripheral chain. These tokens are always redeemable 1:1 with USDC at anytime and are composable with protocols on Mizu MoveVM.
Liquidity Orderbook: Enables LPs and LSs to post offers for liquidity in a fully transparent and decentralized manner. The order book is governed by smart contracts that manage order creation, matching, and settlement, ensuring secure and efficient liquidity discovery.
Yield Partners: Integrated tokens, chains and on-chain protocols.
Mizu MoveVM: A high throughput fully EVM compatible unified liquidity layer connecting EVM, non-EVM, and altVM ecosystems. With support from Movement Labs to ensure scalability and security for Mizu’s interwoven, chain-agnostic architecture.
Mizu connects LPs, Yield Partners, Auto-Yield Vaults, and LSs, creating a seamless system to commoditize yield and liquidity utility.
To Liquidity Providers: Mizu is a transparent and dynamic environment to deploy capital efficiently. LPs deposit assets into gateway contracts across integrated chains. These deposits are immediately tokenized 1:1 as Shadow Tokens on Mizu MoveVM. The underlying assets generate yield through vaults on integrated peripheral chains (Yield Partners).
To Liquidity Seekers: Mizu is an automated liquidity orderbook perpetually optimizing efficiency on incentive effiiency. LSs can rent liquidity by matching or exceeding the "market rate" of yield, as defined by the yield generated on LP deposits by vaults. This allows them to incentivize and secure liquidity for whitelisted pools.
Liquidity Generation: Users deposit $30M of ETH and USD into Mizu’s Gateway Contracts. The $30M is minted 1:1 as Shadow Tokens on Mizu MoveVM to the user who is free to do with the tokens as they please e.g. engage in DeFi on Mizu MoveVM. Simultaneously vaults optimize $30M of ETH and USD within Mizu's Gateway contracts achieving a 12% ARR.
Liquidity Renting: A whitelisted chain that Mizu's vaults generate yield on already seeks $2M of ETH and USD to seed a new pool/protocol/initiative. They offer $250k in incentives for a two-month liquidity lock, greater than the current "market rate" of yield. Vaults therefore allocate liquidity to the pool, provided security, risk and operational constraints are satisfied
