Enzyme is a project that aims to revolutionize decentralized finance. With the growth of DeFi, many organizations and individuals are beginning to see its potential and new developments are emerging that seek to expand its already beneficial functionalities.
WHAT IS ENZYME?
The main goal of Enzyme is to create an asset management framework that allows for the creation, monetization and scaling of investment strategies within the various DeFi ecosystems of the Ethereum network. This allows investors to benefit from the opportunities offered by the market, improving the return on their investment.
To achieve this, Enzyme has created an effective, fully decentralized system that facilitates the custody of digital assets and provides users with several alternatives that allow them to optimize their investments. These include net worth calculation and accounting, fund creation, redemptions and trade execution. All this, managed through Smart contracts, which guarantees transparency and decentralization of the structure, as they operate without the need for intermediaries.
In addition, one of the major benefits of Enzyme is the ease of asset management. In other words, users can optimize where investments are placed so that it performs the management task. This is done through a series of norms and rules programmed into the protocol.
Among other benefits, less experienced investors can find an efficient way to invest their assets, something that usually requires time and knowledge that many of them do not have. In addition, through smart contracts, human intervention is minimized, improving returns and optimizing costs.
HOW DOES ENZYME WORK?
To achieve all the objectives mentioned above and, in addition, to guarantee the decentralization of the protocol, Enzyme has an architecture divided into 2 layers: the Fund Layer and the Infrastructure Layer.
It is responsible for managing and administering all user funds within Enzyme. On the other hand, it is linked to the Release Architecture, which is where the control functions and the ability to design plugins and extensions that allow the integration of other DeFi protocols are located. In turn, this is divided into two other parts that ensure its operation.
This is the sub-layer that allows the creation and management of new funds within the platform. It also allows monitoring by users.
These use Smart contracts to define the funds created by the managers, which also provide services. Clear examples of Spokes are the Vault and Shares.
Architecture Layer (Infrastructure Layer)
This layer is controlled by Enzyme’s Decentralized Autonomous Organization (DAO), which is known as the Melon Council. The DAO is composed of 2 bodies: the Technical Council and representatives of Melon’s Exposed Businesses.
It controls the various infrastructure contracts such as the Adapter, Engine and Price Source contracts.
WHAT IS THE MLN TOKEN AND WHAT IS IT FOR?
MLN is the native token of the Enzyme platform, which is given to network participants as a reward for their contributions. In addition, it is used as a means of payment within the platform and the token needed to create a fund.
Its supply of tokens is unlimited, although there is a fixed amount of tokens (300,600) that are minted annually to pay network participants. This is known as a controlled inflationary token.
The exponential growth of Decentralized Finance is attracting the attention of more and more users. With this growth, new projects have appeared that seek to innovate in the sector and bring new benefits.
This is the case of Enzyme, which has been specially designed to manage the investors of its users in a fast, simple and decentralized way. This opens up a new panorama of opportunities for investors who want their money to be in a decentralized ecosystem in which there is as little human intervention as possible.