Since Enzyme launched in early 2021, we have seen 1,000+ vaults created, more than 2,500 deposits and assets-under-management (AUM) growth from $0 to $230M.
It’s been a remarkable year for the Enzyme protocol. Our community continues to grow while our team delivers on one of the most ambitious roadmaps in the decentralized finance (DeFi) space.
If you haven’t heard of us before, Enzyme is a protocol built on Ethereum that allows users to create, manage and invest in custom crypto asset management vaults. Our goal is to decentralize traditional asset management and lower barriers to entry, thereby opening access to more global consumers.
The world of DeFi is still relatively new, with estimates that only ~4M people have ever used DeFi protocols. However, there are somewhere between 200M to 300M potential users worldwide by most estimates, which would put DeFi penetration below 2% at the moment.
This means that the space has plenty of exciting room for growth! Enzyme intends to fill this gap by functioning as a DeFi operating system, enabling anyone to build and scale an investment strategy that suits their needs.
Some of the most exciting things we’ve seen in the DeFi space (all of which you can do through Enzyme, by the way) include:
- Earning yield via Yearn Finance, Idle Finance and Convex Finance
- Lending and borrowing via Aave and Compound
- Accessing additional rewards from yield farming programs on any protocol
- Trading with the likes of Paraswap,0x, Uniswap, Curve, etc
- Providing liquidity to AMMs and actively managing it via protocols such as Curve Finance and Uniswap v2 & v3
How does Enzyme work?
With Enzyme, you can easily access dozens of DeFi protocols and more than 250 digital assets from the comfort of one platform. To get started, you can create an account on our web-based app and either create your own vault or invest in strategies that seem appealing to you. You can easily filter strategies by assets, risk and performance to find one that fits your investment profile.
In February 2022 we released our v4 Sulu, which allows asset managers to choose between launching a vault on Ethereum or Polygon. This is big news, because our Polygon deployment means it’s up to 1,000x cheaper for users to create a vault. There are knock-on benefits for managing a vault, too, thanks to Polygon’s faster transaction speeds and significantly lower gas fees. In short, this will make the entire asset management experience far more affordable for many users.
On top of this, the latest version of Enzyme features a completely revamped interface, faster app performance and a new MLN tokenomics structure, which includes a burn mechanism to leverage network effects and align the interests of stakeholders.
Today, Enzyme is one of the most recognised and sophisticated asset management protocols on the market. We’re trusted by the likes of Celsius Network, Unslashed Finance, FWB DAO, Human DAO and many more. But don’t just take our word for it.
Let’s take a closer look at all the exciting happenings in the Enzyme ecosystem to try to measure DeFi’s pulse.
Who is Enzyme for?
Enzyme is a kind of DeFi operating system. It aggregates dozens of protocols and hundreds of digital assets into one dashboard.
We have many different kinds of users, including:
- Asset managers
- Corporate treasury managers
- Token holders
Unless you’re thinking about becoming an asset manager, chances are you probably fall into the “investor” or “token holder” category.
As an investor, you can use Enzyme to access cutting-edge DeFi strategies, protocols, and assets. For example: you’re interested in digital assets and have been experimenting with various DeFi protocols. However, keeping up with the latest developments, tracking activity across platforms, and paying egregious gas fees (sorry Ethereum) isn’t viable, both from a time and cost perspective.
With a DeFi asset management platform, you can deposit funds and develop an investment strategy. Each vault on Enzyme contains different sets of digital assets, which are discoverable by asset type, real-time metrics, and historical performance.
Vaults are set up by other users, often experienced fund managers, which gives you the option to invest using someone else’s strategy.
This means you can track and manage your activity across many DeFi projects at once in a safe environment. Enzyme is non-custodial, which means you retain access to your funds at all times.
By aggregating funds into common vaults, you also benefit from batching actions like trade executions together. This helps you save money on gas fees, since these transactions are conducted as a community, rather than individually.
Thanks to decentralized asset management platforms, you can relax and let others manage your investment portfolio while leveraging some of the brightest minds in the DeFi space. But always do your due diligence, because no investment strategy is entirely risk free.
Powered by the $MLN token
Enzyme is powered by MLN, our native token.
MLN is a utility token which gives you access to the protocol. The network collects access tokens in MLN. The number of MLN you need to access the network is equivalent to 25 basis points of the AUM linked to your usage of the protocol. Once collected, these tokens are automatically burned.
- On 9th August, 2022, a burn of 54,669 MLN tokens occurred automatically.
- To date, 382,125 MLN tokens have been burned. This figure can be tracked here.
This applies to vaults on v4. If users fail to pay fees in MLN, they will get penalised for this because the protocol will dilute their vault shares by 50bps.
The MLN collected by the protocol is highly unlikely to offer any value to the MLN token in the short term given that inflation is likely to exceed the amount burnt for many years to come.
Our ambitions and direction for 2022 🚀
Shortly after the launch of our v4 Sulu, Enzyme reached a new all-time high assets-under-management of $230M with more than 1,000 unique vaults created and over 2,500 deposits.
In 2022, we will continue to develop Enzyme as a DeFi operating system and offer solutions to anyone managing assets in DeFi. This could mean creating a fund, building an index, managing DAO or corporate treasuries, designing autonomous strategies or connecting with various DeFi protocols.
Any product built on Enzyme has a transparent track record, since all transactions are recorded publicly on the blockchain. Moreover, investors can access 24/7 reporting and have total visibility over activities such as current token holdings, recent depositors or existing policies.
As the DeFi universe expands at an exponential pace, it’s clear that a total disruption of the asset management space has begun. But it’s not too late to get involved. Discover how you can use Enzyme to build, scale and create an investment strategy that suits your needs.
Join the Enzyme community