Enzyme Review: The Prominent Ethereum-Based Protocol Explained
Decentralized finance (Defi) has proven to be one of the most efficient real-world applications of blockchain technology. It’s aimed at enhancing the operations of the global financial market by simplifying the way individuals manage their money.
Enzyme is among the Defi protocols with innovative strategies that will enable users to manage their portfolios themselves efficiently. It’s a prominent protocol built on Ethereum blockchain, formally known as Melon, and seeks to eliminate the market’s barrier to entry.
If you are interested in acquiring more knowledge about this unique protocol, then this Enzyme review is for you. Here, you will gain more insight into all you need to know before signing up on the network. It’s designed to guide beginners and explain the protocols, technology, features, utility token, and working mechanism.
- 1 What is Enzyme (MLN)?
- 2 How Does Enzyme Finance work?
- 3 Who Created Enzyme Finance?
- 4 What Makes Enzyme Unique?
- 5 Why Does MLN Have value?
- 6 How is Enzyme Network Secured?
- 7 Enzym-MLN Token Circulation?
- 8 Choosing an Enzyme Wallet?
- 9 Why Use MLN Token?
- 10 Enzyme DeFi Integrations
- 11 Conclusion
What is Enzyme (MLN)?
Enzyme is a decentralized blockchain protocol built on the Ethereum network. It was formally launched as the Melon protocols before it upgraded to its present name. The protocol allows you to set up and invest in unique digital assets management vehicles in a safe environment. In addition, Enzyme creates an alternative system using the project web portal and allows investors and other users to co-access funds.
The project aims to decentralize the traditional way of assets management, giving users unrestricted access to investments. It uses its native token MLN crypto to carry out various operations on its platform fairly and transparently.
There is no central authority controlling the platform; hence all users have full control over their funds. Enzyme hosts funds for asset management on their platform and saves users the time of creating such funds.
The protocol enables anyone to manage and invest in assets funds developed by other investors by removing entry barriers. It supports over 200 assets with high liquidity rates in various decentralized exchanges within the system.
How Does Enzyme Finance work?
The Fund Layer
This is where users create, share, and control their investment funds giving other users room to make their investments. Each fund is made up of two parts, namely;
The Hub: The hub is called the main part of the fund layer; it provides the needed tools for setting up a fund. It also tracks all the components of the funds.
The Spokes: The spokes make use of the smart contracts in defining funds that fund managers develop. It also renders other specific services to the fund, like the shares and the vault. The shares track fund ownership while the vault stores tokens on behalf of the funds.
The Infrastructure Layer
The infrastructure layer is part of the Enzyme’s ecosystem controlled by its decentralized autonomous organization and the Melon Council. The Melon council is now known as the Enzyme Council. The protocol’s utility token MLN serves as the governance token and a voting mechanism. It helps in managing assets investments. It’s also used for executing fund management and voting on high rate proposals.
Below are some of the examples of infrastructure contracts;
- The Engine- It buys MLN for ETH for settling computation fee.
- The Adapter contract- It connects some trading assets to price feeds.
- The Price Source- It makes the required general information available for actions within the funds.
Who Created Enzyme Finance?
Mona El Isa founded the Enzyme protocol via his private company Melonport in 2016. The protocol was initially called Melon, and the founder, Mona, is a mathematician and a Rito Trinkler. Mona was the former vice president of Goldman Sachs, and Melonport is based in Switzerland. In 2017, Melonport organized an ICO and made around $2.9 million from the MLN token sales.
They minted and distributed a total of 1.25 million MLN tokens between 2017 and 2018. However, the private company was shut down later, and the Melon council took over the control of the protocol’s network.
The Melon council is a DAO (decentralized autonomous organization) for the enzyme protocol and assumed operation in 2019. They adopted smart contracts which allow MLN token holders to invite new users and upgrade or change the protocol’s parameters.
The Melon Council was on a mission to maintain the network’s integrity, foster innovation, and maximize adoption within the system. They are members of the Enzyme Technical Council (ETC) and the Enzyme User Representatives (EUR).
The Council is lead by a Chairperson and Vice-Chairperson, with other members placed on a bi-annual shift. The mandate and responsibility of the Enzyme Council members are to work in the best interest and good of the protocol.
What Makes Enzyme Unique?
The enzyme protocol has unique features that distinguish it from other protocols on the Ethereum blockchain. These unique features are outlined below;
The enzyme protocol is the first decentralized digital asset management platform. It enables users to have full control and access over their assets.
It’s among the prominent asset management industry that maintains transparency and streamlines processes for users. Hence it reduces the barriers to entry for new users.
The Enzyme adopts the style of on-chain management that allows real-time reporting and reflection of events. It’s a safer and cheaper way of creating and managing a portfolio an in-built software and accounting tools. These tools can carry out complex predictions and calculations instantaneously.
Users of the enzyme platform can monetize their skills and talents in digital asset management via earning from performance fees.
The protocol is a business model that allows users to invest in fund management without trusting the manager. Investors don’t need to know the manager but have total control over their digital assets. This is possible because the smart contract protocol bounds the managers.
Why Does MLN Have value?
The value of the Enzyme is solely dependent on its utility token, technical capacity, technology, and the number of users. In addition, the MLN token price is influenced by events like updates and upgrades, actions of the development team, and important news.
The MLN token is used for governance and voting on the various policies of the protocol’s software like inflation. It’s also used in executing the enzymes fund operations like management and performance fees and transaction costs.
The protocol minted a total of 1.25million MLN tokens which were distributed during the ICO. They supply a fixed quantity of 300,600 MLN every year and adopted the buy and burn model. This will help in controlling the quantity of MLN tokens in circulation and incentivize their use.
The DAO converts ETH used for paying fees into MLN tokens since the network fees are paid in ether. Then, they burn them to remove the excess MLN coins from circulation effectively. This burning process will increase the pressure on the token price and, in turn, increase its token value afterward.
How is Enzyme Network Secured?
The Enzyme adopts a user-centric mechanism of governance. The process involves the participation of all the protocol users in securing the management funds built on the Ethereum protocol.
The protocol engages in frequent audits performed by any of its users based on their active participation. The enzyme council assists in protecting the platform from potential hackers and malicious activities.
The team developed the management funds with smart contracts that send out proof of embezzlement in the case of malicious activity. Once this proof is sent, the management fund will be terminated, restricting the manager of the fund from further operations.
The protocol team maintains continuous improvement and upgrades to further test and secure the network where and when necessary.
Enzym-MLN Token Circulation?
The Enzyme Council mints a total of 300,600 new tokens supplied every year and burns the ones that weren’t allocated. They may reduce this token supply by 20% starting from this year.
The Melon Technology converts all ETH used to settle fees into MLN tokens by selling off ETH for MLN. The technology regulates the MLN token by removing the purchased MLN token from the total supply via burning.
MLN Price Live Data
The live Enzyme price is $124 with a 24-hour trading volume of $48,632,089. The Enzyme is up 14.28% in the last 24 hours, with a significant ranking.
It has a live market cap of $163,782,425 and a circulating supply of 1,792,738 MLN coins.
However, there are limitations to the amount of MLN tokens that you can send through a blockchain as an investor. This is called a safeguard for an efficient and healthy network, as implemented by Coinbase. The minimum is 0.000000000000000001 MLN while the Maximum is 1,500 MLN tokens. The Enzyme (MLN) requires a total of 35 network confirmations to complete a transaction.
Choosing an Enzyme Wallet?
Are you a new MLN investor thinking of the best and safest wallet to store your token? Then, this section is for you. There are lots of wallet options to choose from, as so many of them exist in the digital industry. The type of wallet to select depends on what you intend to do with it and the number of tokens that you need to store. The various wallets options to consider are as follows;
The Hardware Wallet
This type of wallet is also referred to as the cold wallet and is the most secured wallet option. They store digital assets offline with an offline backup; they include Trezor and Ledger, etc. These hardware wallets require more technical skills to operate and are costlier than the other storage option. Hence, they are best used by experienced users to store larger quantities of MLN tokens.
The Sofware Wallet
Wallets of this nature are less expensive and easy to use; it is the best for inexperienced users. You can download them from your Smartphone browser or desktop apps, and it’s used to store a smaller quantity of assets. Software wallets can either be custodial or non-custodial.
In custodial wallets, the service provider manages and backs up your private keys on your behalf.
Whereas in non-custodial wallets, your private keys are stored with secure elements on your device. A typical example of a software wallet is the atomic wallet.
The Online or Web Wallet
This is another type of wallet that you can use for storing your MLN token. It involves storing your crypto with your broker on the exchange’s trading site. They are free, easy to operate, and can be accessed via many devices with a browser. The online wallet is sometimes referred to as a wallet, and it’s not as secure as the hard and software wallets.
The Web wallets are best used by investors with fewer MLN tokens and more frequent traders. They include Binance and Bitcoin.
The Cryptocurrency Exchange Wallet
A crypto exchange where you can easily buy your MLN token. Its storage solution is secure, easy to use, and enables users to trade and store their MLN tokens with ease. You can buy, sell or trade your MLN token on any exchange in few moments. It gives user-friendly security and can be integrated with minimum complexity and transparent functionality.
Other exchanges where you can buy MLN include Huobi Global, Binance, Hotcoin Global, OKEx, and HitBTC.
Why Use MLN Token?
The enzyme protocol applies crypto to traditional finance; it aspires to connect investors with asset management companies. It’s an open-source, blockchain-based, and decentralized protocol that enables users to set up and manage their funds.
You can use the protocol’s technology to develop a transparent and audited fund on the Ethereum blockchain.
Investing with enzyme finance doesn’t require investors to know or trust their fund manager. Instead, the protocol’s specified smart contracts monitor the fund managers.
Crypto traders may develop an increased interest in adding the MLN token to their wallets if they speculate a boom. And users can participate in the protocol’s governance using the MLN token by voting on changes in the protocol’s parameters.
The Enzyme may gain more popularity in the future once Ethereum, the blockchain, and host advances to Proof of Stake. Ethereum blockchain is shifting gradually and intends to move from proof of work to proof of stake maybe by next year.
Enzyme DeFi Integrations
In a bid to offer the best decentralized financial solutions to the Defi world, the enzyme protocol has integrated with the following;
The enzyme council integrated Kyberswap into the protocol to enable them to convert ERC20 tokens into others. Hence, users now have a wider range of converting and exchanging their ERC20 tokens with others.
The enzyme integration with Paraswap is simply to encourage the Paraswap users to donate MLN tokens through an airdrop. The Paraswap users receive a reward of reduced transaction fees whenever they comply.
The Enzyme protocol integrated with Uniswap, an Automated Market Maker (AMM) pool to allow users to earn from trading charges. They earn profits by giving out liquidity to the AMM pool – Uniswap.
The Synthetix protocol is used on the Ethereum blockchain for the issuance of synthetic assets. With its integration into the enzyme protocol, users can have the opportunity of accessing such assets.
Compound lending is the process by which users deposit their cryptos into a lending pool for borrowers to access them. Lenders will earn some interest on their deposited assets each time another user borrows, withdraws, or repays the assets. Enzyme accepted this integration for its users to gain such rewards as they support a wide range of cryptos.
This enzyme review is an evaluation of the enzyme protocol; it gives a detailed explanation of what it entails. From the review, we could say that the protocol aims to create a new investment standard for assets management funds.
It seeks to eliminate the barriers set by management funds and the traditional markets. To achieve this, the enzyme has integrated with projects like the Kyberswap, ParaSwap, UniSwap, Synthetix, and Compound lending.
More so, the enzyme project has an ERC20 MLN utility token which secures and governs the protocol. They also have a wide variety of cryptos that you can exchange with.
You can buy the MLN from many exchanges like Binance, Kriptomat, and Coinbase which also offers a better storage solution. With crypto exchange, you are guaranteed a safe, easy, and free storage solution for storing and trading your MLN tokens.
Finally, the enzyme protocol is a promising platform for Defi investors who intend to have full control over their assets. It offers its services to investors in a more secure and transparent environment.
It is advisable to do thorough research on the MLN token before signing in as an investor. We hope you found this enzyme MLN review informative.