Decentralized finance (DeFi) has become one of the most of blockchain technology and cryptocurrencies, which has led to projects like Enzyme (MLN) to focus on this ecosystem.
LEnzyme's idea to compete in this ecosystem is to create a completely decentralized asset management structure. Being this structure one that allows building, scaling and monetizing investment strategies within the different decentralized finance protocols that make life in Ethereum (ETH). In this way, Enzyme allows investors to create their own investment vehicles that take advantage of market opportunities within the DeFi system, with the aim of obtaining the best possible returns.
But how does Enzyme achieve all this function? What special functions does your protocol present? Well, next we will examine in depth this interesting decentralized finance project.
Origin of the Enzyme Project (MLN)
Enzyme is a project that began its history in July 2016, thanks to a company called Melonport AG, based in Zug, Switzerland. Melonport then began the development of the Melon project, which sought to become an asset management protocol. By February 2017, Melonport started an ICO in order to finance the development of the protocol.
Thus on February 14 began the ICO, with which they managed to raise a total of 2,9 million dollars. With this seed capital, the team quickly accelerated development and by February 2019 the Melon protocol was launched, with version 1.0 fully released.
Among the achievements of this first protocol was the ability to manage single or cross assets, the creation of the MLN token, and the implementation of the DAO for decentralized governance of the protocol. With this, all the points that the Melón Protocol promised were fulfilled, making clear the commitment to the project.
However, for 2020 the development team made the decision to change the name of the project going from Protocol Melon to Enzyme, the current name of the project. The reasons supporting this renaming were:
- The search for a name that is easy to pronounce and remember.
- Let the name evoke a feeling of innovation, power and futurism.
- It was resistant to ups and downs.
- That it had a playful and fun side that reflected the soul of the project.
All this without changing the token and maintaining the same objective: enable participants to create, manage and invest in digital asset funds in an open, competitive, transparent and decentralized manner.
Enzyme Target
Enzyme's goal is to facilitate asset custody, net asset value calculation, performance, commission accounting, distributions, fund creation, redemptions and trade execution in a decentralized finance environment. executed within Ethereum. This means that everything in Enzyme is controlled by a smart contract that is in charge of carrying out all these operations practically without human intervention, beyond that carried out by its decentralized governance.
In this way, an investor within Enzyme can arrive and place their assets within this platform and leave their management under the control of the protocol. To do this, Enzyme has created a series of standards and rules that allow the execution of management tasks for said assets, in the different DeFi protocols that have been connected to Enzyme.
The general idea of this is that Enzyme manages your money in order to generate positive returns to the investor and that said profits can be claimed at any time. All of this is controlled by a simple web interface that connects us to a DApp that allows us to add, withdraw, and manage our funds within Enzyme, greatly facilitating this task.
But how does Enzyme make all this possible? Well, let's see the structure that makes all these functions possible within Enzyme.
Enzyme operating architecture
The operating architecture of Enzyme is divided into two parts in what is the Enzyme v2 protocol, the most current version of the protocol. These two parts are:
Fund layer
The Fund Layer is in charge of handling everything related to the control of funds within the protocol. This layer is divided into two essential parts that are:
Hub
The Hub is the section of the funds layer that is responsible for creating an Enzyme fund and monitoring it within the protocol.
Spokes
Spokes use smart contracts to define the funds, which are created by each fund manager and provide specific services to the fund. Some examples are Vault, a component used to store tokens on behalf of funds, and Shares, a component that tracks fund ownership.
In addition to this, the Fund Layer is closely related to what is known in Enzyme as the Release Architecture, where all the fund control functions of the protocol are found, including the ability to design extensions and plugins for integration with other DeFi protocols.
Infrastructure Layer (Architecture Layer)
The infrastructure layer is controlled by the Melon Council, the DAO of Enzyme.
Some examples of infrastructure contracts are:
- Contract "Adapter" – which links certain assets to price sources for trading.
- Contract "Engine" – which buys MLN for ETH to help pay for certain calculations.
- The “Price Source” contract – which provides the general information necessary for actions within the funds.
MLN Tokens
El MLN-token it is the native token of Enzyme and its main function is to serve as a work compensation token for network participants. Thus, this token has an infinite and controlled inflationary emission, since each year a fixed amount of 300.600 tokens is minted to compensate the maintainers and developers who carry out work for the network.
In addition to this, MLN serves as a token to pay for asset management within the platform, which includes the creation of a fund, the investment request and the redemption of assets. Additionally, any project looking to integrate with the Enzyme network will need to make use of MLN to enable features as required on that platform.
Enzyme Governance
The Council Melon is the governance body of Enzyme, and is a DAO that has been created using the Aragon tool. This DAO is made up of two bodies:
- The Melon Technical Council (MTC)
- Representatives of the Melon Exposed Businesses (MEB).
The job of the MTC is to maintain the evolution and development of Enzyme in order to expand its functionalities and direct the technical future of this project. That is, this council is responsible for the deployment of protocol updates, the management of ENS subdomains that point to smart contracts, the allocation of resources to developers, and the adjustment of network parameters. Members will be compensated with 20% of the annual MLN token issuance.
For its part, the MEB exists to ensure a voice for those whose businesses depend on Enzyme and its future development. This includes fund managers with a minimum asset threshold and other applications and projects that use the protocol. The MEB seeks to balance the power of the MTC by checking its decisions and electing delegates to represent its interests on the council. To access the Enzyme governance system, all you have to do is go to this space websites, where you can follow the entire process.
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