mOFT

Counterfactual also introduces mirrored assets, an advanced implementation of Omnichain Fungible Tokens (OFTs), designed to provide users with seamless cross-chain functionality and yield generation.

What are mOFTs?

mOFTs are tokenized representations of base assets (e.g., USDC) that users mint by locking their assets on any supported chain. Once minted, these mirrored tokens (e.g., moUSDC):

• Synchronize across all chains to reflect a unified balance.

• Enable spending on any chain, allowing users to use their assets directly in DeFi applications across chains without needing to bridge or transfer them manually.

• Automatically accrue yield sourced from the liquidity on L1, where it is most abundant.

Why Mirrored Assets Matter

• Omni-Spend Capability: Unlike traditional cross-chain tokens that require bridging before use, mOFT balances are synchronized globally and spendable on any chain as if they were native to it. This unlocks instant access to liquidity and eliminates delays.

• Cross-Chain Usability with Unified Balances: mOFTs synchronize balances globally, allowing users to seamlessly interact with and spend their holdings on any chain for trading, lending, or yield farming.

• Yield Generation: By locking assets like USDC, users earn a consistent APY (e.g., 8%), sourced from liquidity pools on L1, where liquidity is deepest.

Mirrored assets redefine cross-chain usability by combining flexibility, yield generation, and synchronized management into a single solution, empowering users to maximize efficiency and security in decentralized finance.