Enzyme Finance an On Chain Asset Management Tool
Enzyme Finance is an open-source protocol that is built on the Ethereum blockchain. It enables the setup to build and scale investment strategies built by pooled digital assets. It enables asset managers to create their own asset investment vaults which are a basket of different digital tokens.
The project was earlier known as Melon protocol but it rebranded itself in December 2020 as Enzyme. Tickr for Enzyme is still the same as earlier MLN.
What Problem is Enzyme trying to solve?
In traditional finance managed funds come with a lot of shortcomings which are minimum capital amount to start investing, higher fund management fees charged by fund managers which creates some barriers to a seamless entry for an investor. Enzyme is trying to solve this problem through De-Fi by bringing asset management to Ethereum blockchain. It aims to provide custom-managed funds without paying higher fees and bare minimum entry points to investors. Enzyme is trying to tap into the huge ETF market by providing more robust and attractive solutions to common investors.
Work process of Enzyme Finance
Enzyme finance consists of two layers
The Fund Layer –
This is the layer where users actually launch their funds and make it public to other users so they can also join their funds. Each fund has basically two components the hub, which provides the tools to set up the fund, and the spokes which consist of services like the vault and shares. The Infrastructure Layer
The infrastructure layer –
This layer is controlled by the Melon council and includes contracts to link assets to price feeds, buy MLN to EtH and provide general information needed by funds.
Tokenomics of MLN Tokens
MLN is the native token for Enzyme and it is used to pay for the service and also acts as a governance token in the Enzyme platform.
A total of 1,25,000 MLN tokens were created at the time of launch but another 300,600 get added every year which are used to reward the developers the rest of them get burned.
The limited supply till now and burning of tokens create a scarcity for it but the new number of tokens getting added drop the ball for MLN tokens.
My Review of Enzyme Finance (MLN)
Enzyme has been in there for around 4 years and already has a working project but with the amount of competition in De-Fi space, it still needs to make a mark. It has been slow in the growth curve and there also seem some issues going with the tokenomics. I will like to wait and watch on MLN for now.
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