Enzyme (MLN), the protocol formerly known as Melon (MLN), helps investors navigate the vast number of decentralized finance (DeFi) solutions out there.
To explain, Enzyme builds vaults that allow users to implement investment strategies using different DeFi protocols. The smart vaults allow users to use DeFi apps without putting all of their data and money at risks. Moreover, Enzyme allows to scale the vaults as large as they want.
To elaborate, a smart vault is a decentralized app (DAPP) that contains a DeFi protocol. The DeFi protocol invests funds in the vault using the user’s strategy. For example, an Enzyme vault can invest funds using Idle Finance’s yield automation protocol.
Enzyme Smart Vaults
They describe Enzyme as a decentralized asset management infrastructure built on Ethereum (ETH). Enzyme smart vault create, implement, scale, and monetize investment strategies using many DeFi protocols and tokens.
Users can create custom Enzyme vaults for specifics such as lending, providing liquidity, or mutual fund investment. Hence, you could have one smart vault to provide liquidity and another to automate yields.
Enzyme depositors can interact with vaults in a noncustodial manner that requires minimal trust. You can prevent Enzyme Vault managers from performing certain actions and require other actions.
They provide live accounting through the Enzyme Subgraph. The Subgraph can retrieve reporting data and make it transparently available. Users can configure and impose policies, such as fees and prohibited behaviors, at a vault level. Smart Vaults can delegate trading and other functions to third-party addresses.
What can Ethereum Smart Vaults do?
Currently, Enzyme (MLN) integrates with the following DeFi protocols and tokens: Aave, Compound, Convex Finance, Idle Finance, Curve Liquidity Pools, Maple Finance, Paraswap, Uniswap V2, Uniswap V3, Unlashed Finance, Yearn Vaults, and Ox. The Enzyme team plans to integrate with many more DeFi protocols soon.
Users can integrate Enzyme with the Gnosis Safe in order to become a decentralized autonomous organization (DAO). A DAO is a corporate structure with no governing body. The DAO structure allows all the members or owners to participate in the organization’s management.
Functions they allow on Enzyme include decentralized exchange (DEX) trading, providing liquidity through Curve and Uniswap, yield farming, and synthetic asset trading. Enzyme makes money by charging vault owners management, performance, and entrance fees.
How Much do Enzyme Vaults Cost?
The current Enzyme fee is 25 basis points (25%) on Assets under Management (AUM). Enzyme collects the fee by aligning the interest between users and the value of MLN tokens.
Building an Enzyme Smart Vault is free, but users pay Ethereum gas fees. Enzyme estimates it costs $150 to $200 to deploy a Smart Vault because of high gas fees?
The Enzyme team is researching Ethereum Layer 2 options to see if they can lower gas fees. Enzyme also offers gas subsidy programs to cover users’ costs.
Users can participate in Enzyme as Vault Managers and Depositors. Managers create and operate vaults. Depositors can deposit funds or assets into Smart Vaults built by others. A user can participate as a Depositor and a Manager at the same time.
DeFi-as-a-Service
Interestingly, enough there is an Enzyme trading robot built by Erin Koen. The robot executes trading strategies from an Enzyme vault.
Avantgarde Finance is a DeFi-as-a-Service app associated with Enzyme that provides professional-grade tooling and services for asset management. For example, Avantgarde manages crypto balance sheets.
Avantgarde provides Treasury Management for Smart Vaults, including non-custodial investment, fee automation, probable on-chain records, digital fund raising, compliance, delegated permissions, full visibility, real-time reporting, and risk management. To provide those services, Avantagarde builds tools on Enzyme.
Avantgarde reported a Total Portfolio Value of $1.452 million on 25 October 2022.
What Value Does Enzyme (MLN) Offer?
Mr. Market gives Enzyme (MLN) some value. For example, Enzyme was CoinMarketCap’s ninth most trending cryptocurrency on 23 October 2022.
Additionally, CoinMarketCap gave Enzyme a $26.54 Coin Price, a $59.227 million Market Cap, a $54.104 million Fully Diluted Market Capitalization, a 24 Hour Market Volume of $54.894 million, and a Total Value Locked of $14.881 million on 25 October 2022.
Enzyme had a Central Exchange (CEX) Volume of $14.851 million and a Decentralized Exchange (DEX) Volume of $30,024.42 on 25 October 2022. They base those numbers on a Circulating Supply of 2.039 million MLN and a Total Supply of 2.07 million MLN. CoinMarketCap ranked Enzyme as its 345th on 25 October 2022.
In contrast, Enzyme (MLN) was CoinGecko’s 486th ranked cryptocurrency with a $26.46 Coin Price on 25 October 2022. CoinGecko gave Enzyme a $38.463 million Market Cap, a $14.153 million 24-Hour Trading Volume, a Fully Diluted Valuation of $54.764 million, and a Total Value locked of $45.448 million on 25 October 2022. They base numbers on a Circulating Supply of 1.454 million MLN and a Maximum Supply of 2.07 million MLN.
I think Enzyme is an interesting speculative investment because its builders work with other DeFi solutions. Hence, Enzyme is a diversified investment because it offers many strategies and many ways to make money. However, Enzyme is risky because it also offers many ways to lose money.
Speculators need to investigate Enzyme (MLN) because it could grow into a major DeFi solution and company.
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