In the DeFi field, institutional-level liquidity management faces compliance challenges. Taking a well-known investment institution as an example, it manages 5 million USDT of DeFi liquidity and needs to regularly submit compliance materials such as fund flow, income details, and risk control records to regulatory authorities.

However, traditional manual organization methods face numerous difficulties. Firstly, funds are scattered across multiple protocols, resulting in the organization of transaction records taking more than a week. Secondly, the yield data format of some protocols is not standardized, requiring manual calibration and is prone to statistical errors. Finally, risk control records are scattered across various operation logs, making it difficult to form a complete chain of evidence, which has previously led to delays in the audit process.

To address these issues, Mitosis has launched an innovative solution. Its core includes two major technologies:

1. On-chain compliance log programmable component: This component can record each operation in real time, automatically labeling transaction details such as counterparty, protocol name, and purpose. When settling profits, it can automatically summarize according to protocol and time dimensions, generating CSV format details that meet regulatory requirements. For risky operations, such as liquidation warning triggers and position adjustments, the component will synchronously record the triggering reasons, response measures, and operational results, forming a complete risk log. All logs are encrypted with the SHA-256 hash algorithm and stored on-chain, ensuring they are tamper-proof.

2. Regulatory Audit Dedicated Interface: Mitosis provides a dedicated audit interface for regulatory authorities, simplifying the Compliance review process.

Through these technologies, Mitosis achieves the automated generation and structured presentation of compliance materials, greatly improving audit efficiency. This innovation not only addresses the compliance challenges faced by institutions in DeFi liquidity management but also provides new ideas for the standardized development of the entire industry.

As the DeFi market continues to expand, solutions like Mitosis will play an increasingly important role in facilitating institutional participation and regulatory compliance. It not only helps reduce operational costs for institutions but also enhances the effectiveness of regulation, promoting the healthy development of the DeFi ecosystem.