Zootosis: Matrix Vaults are Going to Morph

Today marks an exciting milestone for Mitosis as we announce our Matrix Vaults on Morph L2, aka Zootosis. Morph is one of the first Ethereum L2s with a hybrid scaling solution combining optimistic and zk roll-ups incubated by Bitget. This strategic integration represents a significant advancement in our mission to democratize access to premium yields and transform how liquidity flows through DeFi.

Why Morph L2: Strategic Alignment

The decision to deploy Matrix Vaults on Morph L2 wasn't made lightly. As we've developed our Matrix Vault infrastructure, we've constantly sought partners that share our vision for accessible, efficient, and sustainable DeFi.

Morph stands out as the ideal candidate for our next generation of Matrix Vaults for several compelling reasons. First, its unique hybrid scaling solution combines the best elements of optimistic and ZK roll-ups – a technical foundation that perfectly complements the sophisticated requirements of our vault strategies. This hybrid approach allows for faster finality than optimistic rollups while maintaining the essential EVM compatibility for yield-generating mechanisms.

The Decentralized Sequencer Network Morph has built is particularly valuable for Matrix Vaults. Unlike other L2s that rely on centralized sequencers, Morph's decentralized approach ensures that no single entity can manipulate transaction ordering, a critical feature for yield strategies that depend on fair and predictable execution. Their Responsive Validity Proof System (RVP) further enhances security without sacrificing the efficiency our users deserve.

What's particularly impressive about Morph's technical architecture is its ability to balance immediate performance with long-term scalability. While many L2s optimize for one at the expense of the other, Morph's modular design creates an infrastructure that can grow alongside our vaults' increasing complexity and liquidity depth.

Beyond technical alignment, partnering with Morph allows us to bring Matrix Vaults closer to where on-chain finance is headed — more accessible, intuitive, and user-aligned. Morph isn't just another L2, but it's an infrastructure built for the global digital consumers. With Morph Pay at the center of its ecosystem, Morph is enabling users to earn, spend, and manage their finances fully on-chain, using intuitive tools and seamless interfaces. For Mitosis, this is the ideal environment to bring Matrix Vaults closer to everyday users, not just DeFi-native users. Our vault strategies, paired with Morph’s consumer-centric rails, make sophisticated yield opportunities accessible to a broader audience. Together, we’re expanding the definition of on-chain finance from speculation to sustainable participation.

Comprehensive Asset Support from Day One

Our Morph L2 integration launches with support for a diverse range of assets, enabling users to engage with our ecosystem in ways that best suit their portfolio strategies. We will start with Main Assets on Day One, and gradually expand support to Secondary and Wildcard assets later. See the list of supported assets and respective caps below.
Main Assets ($80M) – $20M cap per asset:

• WETH (~11,120 ETH at $1,800 average price)
• USDT ($20M)
• USDC ($20M)
• WBTC (~211 BTC at $95,000 average price)

Secondary Assets ($60M):

• ETH Derivatives – mphETH, weETH, STONE ($10M cap each; ~5,560 ETH at $1,800)
• BTC Derivatives – LBTC, SolvBTC ($5M cap each; ~53 BTC at $95,000)
• Stablecoins – sUSDe, USDa, USDS/DAI, sbvUSD ($5M cap each)

Wildcard Asset ($10M) – The exact asset will be unveiled later.

• Each vault has a fixed cap to ensure sustainable APYs and balanced distribution.

This broad asset support reflects our commitment to inclusivity and flexibility. Whether you're looking to optimize stablecoin yields, maximize returns on your ETH holdings, or put your Bitcoin to work, Matrix Vaults on Morph provide a capital-efficient pathway with enhanced rewards.

The Integration: A Two-Phase Approach to Maximizing Value

Phase 1: Direct Deposits & Zoots Points System

Once Zootosis Vaults launch, you can deposit any supported assets directly into Matrix Vaults on the Morph chain. Upon depositing in the vault, you'll receive maAssets, our tokenized vault positions that maintain full composability within both ecosystems. You can select your Liquidity Period (the amount of time you wish to supply liquidity for). The longer your Liquidity Period, the more of a boost you will receive towards your Zoots.

What truly distinguishes this integration is the unified points system. You'll begin accruing Zoots from the moment you deposit. This system creates a robust incentive structure that rewards participation across both ecosystems and makes you eligible for future Morph token and MITO allocations.

This approach moves beyond traditional yield farming to establish genuine, long-term alignment between users and the protocols they support. We're not chasing short-term APY figures but building sustainable value accrual mechanisms that reward committed participants.

Phase 2: Specialized Supply Options

In the second phase of the Vaults, we'll introduce specialized supply options that harness Morph L2's unique capabilities. You can direct your liquidity toward specific strategies that leverage money markets and AMMs within the Morph ecosystem.

When you select a specialized supply option, your liquidity seamlessly transitions from the general Matrix Vault to your chosen strategy. You'll receive strategy-specific maAssets that unlock enhanced benefits:

• Accelerated point accrual rates
• Strategy-specific rewards
• Optimized yield profiles for different risk preferences
• Deeper integration with the Morph ecosystem, powered by Morph Pay at its core

Throughout both phases, we stay true to our core principle of user autonomy. There are no forced lockups—you can withdraw at any time, with withdrawals processed within a predefined timeframe. However, early withdrawal means forfeiting 90% of accumulated Zoots points if you withdraw before your selected Liquidity Period is up, creating a natural incentive for long-term participation without restricting your choices. The 90% forfeit is only applied to Zoots points, not native yields for supply options.

Reimagining Liquidity Incentives for Sustainable Growth

The DeFi ecosystem has long struggled with a fundamental challenge: encouraging long-term liquidity provision without resorting to rigid lockup periods. Most protocols require strict timeframes, alienating users who value flexibility or offer no lockups but suffer from mercenary capital and liquidity instability.

Our Matrix Vaults on Morph L2 chart is on a different course. We respect your autonomy by allowing withdrawals at any time, but we also create natural incentives for long-term holding through our points system and yield optimization. The longer you maintain your positions, the more you benefit from compounding effects and future token eligibility.

This model represents a maturation in protocols' approaches to liquidity. By aligning incentives rather than forcing behavior, we create sustainable liquidity that benefits all ecosystem participants.

Technical Benefits: Why Morph Elevates Matrix Vaults

The technical architecture of Morph L2 provides several advantages that directly translate to improved user experiences with Matrix Vaults:

• Faster Transaction Processing: Morph's Decentralized Sequencer Network enables rapid deployment and rebalancing of strategies, maximizing yield opportunities. The ability to process transactions with minimal latency is crucial for vault strategies that need to respond quickly to market conditions – an area where Morph substantially outperforms other L2s we've evaluated.
• Enhanced Security with Quicker Finality Times: The optimistic zkEVM approach significantly reduces settlement time while maintaining robust security guarantees. This hybrid validation model creates the perfect balance for sophisticated vault strategies requiring speed and certainty. Where traditional optimistic rollups would require week-long waiting periods for withdrawals, Morph's innovative approach dramatically shortens these timeframes.
• Cost-Effective Operations at Scale: Morph, being a rollup, enables the use of Ethereum for data availability, which achieves remarkable efficiency at scale. As transaction volume increases, their batching mechanisms become increasingly cost-effective—a crucial factor for Matrix Vault operations, where gas efficiency directly impacts user yields.
• Cross-Chain Composability: Morph's infrastructure is designed from the ground up for seamless interactions across the broader Ethereum ecosystem. This enables our Matrix Vaults to tap into more excellent utility when Mitosis Chain launches without the friction typically associated with cross-chain operations.
• Future-Proof Architecture: Morph's technical roadmap aligns perfectly with our long-term vision for Matrix Vaults. Their planned upgrades to reduce latency and increase throughput can enable increasingly sophisticated vault strategies that wouldn't be viable on more limited L2 infrastructures.

Building for DeFi's Mass Adoption Future

While yields matter, our collaboration with Morph L2 aims at something more profound: accelerating DeFi's path to mainstream adoption.

Together, we're creating infrastructure that serves not just existing crypto natives but opens the door for the next wave of users entering the ecosystem. Our integration achieves this through several design principles:

• Simplified Complexity: We abstract away technical complexities while preserving the strategies that generate value.
• Reduced Barriers to Entry: Morph's hybrid scaling solution minimizes transaction costs, making smaller deposits viable and inclusive.
• Flexible Participation: The ability to exit positions when needed reduces perceived risk for new participants.
• Composable Assets: maAssets that remain usable throughout the ecosystem create multiple paths to accrue additional value and serve as a means for exchange.

Building the Foundation for Morph's Future

The launch of Zootosis on Morph L2 represents a fundamental advancement in how protocols and users interact mutually beneficially. By depositing your assets today, you're doing more than positioning yourself for future opportunities – you're directly contributing to the foundation upon which Morph will build its ecosystem.

The liquidity flowing through Matrix Vaults plays a crucial role in Morph's growth trajectory. As an early liquidity provider, you're establishing yourself on the ground floor of a groundbreaking L2 ecosystem. Early participation in new ecosystems has historically created unique opportunities for those recognizing potential before mass adoption begins.

Through our unified Zoots points system, we've designed a mechanism that ensures those who help build this foundation position themselves to participate in the ecosystem's success. As Morph's infrastructure expands and user adoption grows, the value captured by early liquidity providers stands to compound significantly.

Whether you're bringing ETH, stablecoins, or Bitcoin representations to the table, our Matrix Vaults provide a capital-efficient way to use those assets while maintaining your desired flexibility.

Zootosis is the beginning of what we believe will be a transformative collaboration. As we continue to develop and expand our integration with Morph L2, we'll introduce new strategies, assets, and features that further enhance our community's value proposition.

We invite you to join us as we build the next generation of DeFi liquidity infrastructure – one that's more accessible, efficient, and aligned than anything that's come before.