What is Enzyme (MLN)?
Enzyme is a decentralized blockchain-based asset management infrastructure that operates on the Ethereum network. Enzyme offers innovative features and strategies to help network users and participants build, create, and manage their portfolios. The main goal of the project is to decentralize the traditional model of asset management and allow users to invest in any supported project or investment portfolio without any barriers to entry.
Anyone can participate in the infrastructure and obtain full control over their assets with maximum transparency. All users have full ownership over their funds as no central authorities are operating the network.
Enzyme hosts asset management funds on the portal, thus eliminating the need for users to create such funds, which could take months in the traditional model of asset management. The barrier to entry is also non-existent, which allows the average consumer to invest. Enzyme increases the global outreach of the project by removing the entry barrier so anyone can manage assets and invest in asset funds created by other users.
Users can launch their portfolios to the network so other network participants can invest their assets. Enzyme supports over 200 assets with top liquidity rates across the decentralized exchanges hosted within the ecosystem.
How Does Enzyme Work?
Enzyme architecture consists of a set of smart contracts built on top of the Ethereum network. The project uses its own software and protocol for utility and available features for asset management, while it uses Ethereum for computational power to run the network. Since Ethereum powers the Enzyme asset management infrastructure, fees and transactions on the protocol are paid in Ethereum’s native crypto, ETH.
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The Infrastructure layer is a part of the ecosystem controlled by Enzyme’s decentralized autonomous organization, dubbed the Enzyme Council (previously Melon Council). MLN, the utility token of the protocol, helps manage digital investments. MLN also serves a purpose in the voting mechanism and network governance – for voting on inflation rate proposals, for example. MLN is additionally used for fund management execution.
Who Are The Founders of Enzyme? (History of Enzyme)
Enzyme was originally created and launched under the name Melon with the ticker MLN. While the project didn’t change the ticker, the name of its ecosystem was rebranded to Enzyme. Melon launched in 2016, developed by a private company. The founders of Enzyme Finance and Melon are mathematician Rito Trinkler and Mona El Isa. Mona El Isa is a former vice president of Goldman Sachs.
The company is based in Switzerland and organized an initial coin offering in 2017. Melon raised nearly $3 million between 2017 and 2018. The company minted and distributed 1,250,000 MLN coins during that period. The private company, named Melonport, was shut down and control over the network and its protocol was transferred to the Melon Council, which is a decentralized autonomous organization for the Enzyme protocol. In 2019, the team released the first version of the Enzyme Finance protocol, after which Melonport was terminated and all operations were passed to the Melon Council. The Melon Council operates on smart contracts that enable users to invite new network members and participate in network governance, which includes changing the protocol and its parameters.
What Makes Enzyme Unique?
Enzyme Finance aims to remove the barriers that prevent many average investors from participating in managing investment funds in traditional financial markets. Traditional financial markets and asset management are usually reserved for big-time investors and the minimum entry level is usually too high for the average person.
Enzyme protocol makes asset management funds available to a wider demographic of investors as it removes the minimum entry level to allow anyone to invest in funds, manage their assets, and create portfolios and funds. What makes Enzyme unique is its features, technical capacity, and utility, while users can keep full control over their assets with transparency.
Another unique feature that makes Enzyme a special project in the sector of decentralized finance is the fact that users can invest in a management fund without knowing or trusting the manager and still get to have full control over their assets. Managers are bound by special smart contracts on the protocol.
What Gives Enzyme Value?
Enzyme derives value from its technical capacity, technology, utility, overall rate of use, and the number of users on the protocol. The intrinsic value of Enzyme is determined by its use cases and the technology behind the project, describing the real-life value that the project has based on its features and utility. The intrinsic value often doesn’t coincide with the market value of MLN as the native token is traded in the crypto market and is subject to frequent changes just like other digital assets in the market.
Enzyme can radically change its market value within a relatively short period, driven by volatility and affected by numerous factors that may influence the market price of MLN. The price of Enzyme can also be affected by the activity of the dev team and important news and events such as upgrades, updates, developments, an increasing number of users, mergers, partnerships, and similar defining elements.
How Many Enzyme (MLN) Coins Are There in Circulation?
There are currently MLN in circulation out of a total of . The original token economics of MLN involved an ongoing inflation rate of 300,600 new tokens issued each year, with any that weren’t allocated being burned. However, the Enzyme Council is considering a proposed change to the economic model which would mean token emission decreasing by 20% each year from 2021. Tokens unspent for two years would be burned.
Since Enzyme members use ETH to pay for fees, the network has a mechanism that relies on the Melon Engine feature to convert all ETH used for fees into MLN. The Engine sells ETH for MLN at a premium price then burns the purchased MLN tokens to regulate the supply and remove these tokens from the total supply.
Other Technical Data
The network consists of two layers, as previously mentioned, the Fund layer and the Infrastructure layer. The Fund layer is divided into two parts: the Hub and the Spokes. The Hub contains all the necessary tools and features for the Fund layer to operate properly and represents the core of this layer. Users can use these tools to set up a fund. The Spokes component uses smart contracts to define specific uses of the funds. These use cases are created by fund managers and examples of such components would be the Vault and Shares components. The Vault securely stores users’ funds and Shares have the task of tracking user ownership over the funds in question.
The Infrastructure layer contains infrastructure contracts. A good example is the engine contract that powers the Melon Engine. The engine contract buys MLN for ETH for certain computational charges.
How is the Enzyme Network Secured?
Enzyme protocol is secured through frequent audits that any user can perform based on their network participation, while Enzyme Council protects the network from malicious activities and potential hacker attacks.
Through the use of user-centric governance, all users have access to secure management funds built on top of the Ethereum protocol. Management funds are created with smart contracts and if there is malicious activity, the proof of embezzlement is sent and the management fund is terminated so the manager of that fund can’t execute any more operations from that point. The team works on frequent upgrades and improvements, while there is also a bug bounty for further testing and securing the network.
How to Use Enzyme?
Enzyme is a blockchain-based, open-source, decentralized protocol that allows users to create and manage their own funds, while other users can make investments in a trustless manner. Enzyme can be used to invest funds with no minimum barrier to entry.
Users can also use MLN, the utility token of the network, to participate in network governance by proposing and voting on changes to the protocol and its parameters. Enzyme is a prominent project in the sector of decentralized finance, and it might become even more popular once Ethereum, the base protocol where the Enzyme software is hosted, transitions to Proof of Stake.
How to Choose an Enzyme Wallet?
There are plenty of places you could store your MLN and the type of wallet you choose will likely depend on what you want to use it for and how much you need to store.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of MLN for more experienced users.
Software wallets like Atomic provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of MLN or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your MLN, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your MLN tokens without hassle. Storing your MLN with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling MLN, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Enzyme Consensus Mechanism
Enzyme is based on the Ethereum protocol and is powered by its architecture and consensus mechanism. Ethereum is in the process of transitioning from a Proof of Work to a Proof of Stake protocol. PoS uses less energy, making this consensus mechanism more cost-efficient and faster than PoW.
Enzyme aims to create a new standard for investing in asset management funds, thus removing the barriers set by traditional financial markets and management funds. Users can create and manage investment funds and invest in any portfolio they like. From ETFs to discretionary, there are a growing number of investment choices as the platform develops.
Enzyme makes for an interesting project for DeFi investors and average users who would like to invest their assets with full ownership and within a secure and audited ecosystem.
How to buy Enzyme?
Buying MLN is as easy as visiting Kriptomat’s how to buy Enzyme page and choosing your preferred method of payment.
How to sell Enzyme?
If you already own MLN and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.
Enzyme price is subject to frequent changes and is in constant flux, mostly driven by volatility. You can check live Enzyme prices on Kriptomat.
The price of MLN is influenced by traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general. It is also affected by the balance between token emission and burning, which is currently being redesigned by the Melon Council, as of June 2021.
The current MLN price is EUR.
The 24-hour trading volume of MLN is EUR. MLN is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of and a max supply of .
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