An ever increasing number of projects are leveraging the capabilities of Enzyme, laying the foundation for a more efficient, secure and equitable financial ecosystem. In this article, we explore some of the most innovative projects building on Enzyme’s infrastructure.
Enzyme is a non-custodial DeFi operating system designed to enable asset managers, treasury managers, DAOs, organisations and institutional investors to create automated on-chain investment vaults. By utilising smart contracts, Enzyme connects with dozens of DeFi protocols, allowing asset managers to develop composable strategies that harness the true potential of DeFi.
Today, there are an increasing number of projects building on Enzyme that solve a variety of pain points. With their own front-ends and customer-facing platforms, each of these projects is distinct in its own right but leverages the underlying smart-contract technology and on-chain asset management features that Enzyme has created. This adaptability allows each platform to address the specific needs and preferences of their users, providing a more personalised and engaging customer experience.
Join us as we reveal why these projects have chosen to build on Enzyme and discuss how they are working to transform the on-chain asset management space.
Why build on Enzyme?
With Enzyme’s newly launched API and upcoming SDK, our ever increasing number of DeFi integrations and Avantgarde’s newly launched regulated on-chain fund platform, there are more reasons than ever to start building on Enzyme. Let’s explore a few of these reasons now.
- Access our SDK and API: Unlock seamless data querying from the Enzyme Protocol with the new Enzyme API, designed to empower vault owners and projects with streamlined access to vault activities that enables the development of innovative features and applications.
- Run sophisticated DeFi strategies: Through the utilisation of Enzyme’s smart contracts, projects can easily connect with 20+ DeFi protocols that have been vetted and integrated by our team of developers. And with access to more than 250+ digital assets, managers can create composable strategies that tap into the vast and multifaceted world of DeFi.
- Automate trading: With the ability to fetch real-time and historical data, advanced users and developers can create automated trading systems or robo-advisors that respond to market conditions based on pre-set criteria. This could optimise trade execution and potentially enhance returns.
- Streamline accounting: Vault owners can utilise the Enzyme API to pull data directly into their accounting systems, automating the process of tracking inflows, outflows, and holdings across different assets. This can simplify the reconciliation process and provide a real-time view of the vault’s financial status. With accurate and easily accessible data, the API can help in maintaining proper accounting records, thereby easing the preparation of financial statements and tax filings.
- Launch a regulated fund and manage it on Enzyme: Avantgarde and Agio have now bridged the gap between institutions and blockchain-based asset management technology by wrapping DeFi vaults running on Enzyme into a fully compliant fund structure. Importantly, these regulated investment funds preserve many of the original values of blockchain: elimination of counterparty risk, the right to self-custody, the provision of much needed transparency to the institutional market, and 24/7 provable and verifiable reporting.
The Top Projects Building on Enzyme
Sygnum, the world’s first regulated digital asset bank, is on a mission to empower everyone, everywhere, to own crypto with complete trust. Sygnum offers professional 24/7 trading for the digital assets market, alongside a robust staking service, custody division and asset management products.
On July 18th, 2023 at ETH CC in Paris, Sygnum publicly announced it has begun work on a proof-of-concept on-chain asset management vault using Enzyme. Notably, this vault will retain all the benefits of DeFi and will be run fully on-chain.
Using Enzyme’s 0x v4 integration, Sygnum will be able to conduct fully on-chain RfQ orders with known market makers. The POC vault went live on Aug 9th and is currently undergoing review and analysis by the Sygnum team.
Avantgarde Asset Management
Avantgarde is known as a core contributor to the Enzyme protocol. However, over time we have evolved into the world’s first on-chain asset manager. Avantgarde Asset provides institutional-grade infrastructure to interact with DeFi securely, transparently and compliantly. The tech stack eliminates counterparty risk, enables self-custody as an option and gives investors full transparency.
To learn more, reach out to a member of the team at firstname.lastname@example.org
Diva Staking Protocol
Diva Staking Protocol is gearing up for a groundbreaking initiative using Enzyme. This Diva Improvement Proposal proposed by Avantgarde aims to ignite a chain reaction of network effects by introducing a Pre-Launch Total Value Locked (TVL) for Early Stakers. The initiative primarily focuses on incentivizing Early Stakers, those who commit to Diva’s vision before its mainnet launch.
These early adopters will be rewarded with DIVA token incentives. Not only will this boost confidence in the protocol but also encourages active participation in governance. Additionally, the initiative paves the way for two more incentive programs, which will cover Node Operators and Liquidity Providers for the upcoming LST (divETH), thus fostering a robust framework for the long-term success of the protocol.
With these initiatives, Diva aims to create a diverse and thriving DeFi ecosystem while adhering to important considerations such as security, token allocation, and transferability. Stay tuned for more updates on how this initiative unfolds and how Enzyme & Avantgarde contribute to the evolving landscape of LSTFi projects.
As decentralised finance (DeFi) matures, more and more financial services can be constructed purely in code, whereas before they existed as traditional and bureaucratic paper-pusher institutions.
The first steps in this direction have already been taken by Enzyme. TradingStrategy.ai takes this a step further and decentralises the role of an investment manager — the person who is going to decide what trades to take and execute them.
Specifically, Trading Strategy is using Enzyme to enable sophisticated automated trading strategies for quants, so they can trade on DEXes and DeFi. Before, these people had to go to centralised exchanges like FTX, where many burnt their fingers and are now looking for DeFi solutions.
Trading Strategy offers:
- Historical and live market data
- Strategy development and backtesting framework
- Live trade execution directly on-chain
- Fund and asset management system (integrated with Enzyme)
Recently, TradingStrategy won an award at the ETH Dubai and Sushi Swap 2023 Hackathon, which leveraged Enzyme’s asset management technology. The team’s Citade-Sashimi project enables the execution of quant trading strategies for Sushi using Python scripting and Enzyme vaults.
Shbank is a one-stop shop DeFi yield protocol focused on building structured products vaults. The first product of Shbank is the Convertible Vault, which builds on top of Enzyme and Solv. The convertible vault essentially allows users to earn stable coin yield and SBK rewards (Shbank’s primary token) by locking volatile tokens for a given maturity.
Shbank is building on top of Enzyme because it allows users to pool funds seamlessly and securely, which is a key requirement for the convertible vault. Enzyme is Shbank’s go-to solution because of its:
- Rich features and flexibility of the enzyme vaults, which allows to personalise the vaults to meet the business needs and custom requirements of the structured product
- Long and established track record of security with renowned auditors
- Optimised gas costs despite the sophisticated infrastructure design
- Enzyme’s DeFi protocol integrations are convenient for building complex products to answer market needs
DigiTao Hub is an ambitious DeFi project that aims to build a community-driven, self-custodial, digital asset education and investment platform. DigiTao’s primary objective is to empower conventional investors who have been hesitant to enter the digital asset arena due to its fast pace and complexity.
The platform offers education on beginner topics to advanced investment and trading concepts, enabling members to expand their knowledge and understanding of digital assets.
Community co-vesting vaults enable members to invest in a diversified portfolio of managed on-chain digital assets through a single vault token. This creates an easy way to gain exposure as you learn, as well as a tax-advantageous structure with only a single token for tax reporting and all while retaining full ownership in their own secure Web3 wallet.
Self-custodial vaults are secured on Enzyme’s v4 Sulu with audited smart contracts that provide real-time audits and transparent analytics ensuring that members are always informed about their assets.
In order to access premium and exclusive content or services, members will be required to have a special digital access token depending on their chosen path. Created through the use of blockchain and smart contracts, this token acts as an all-in-one solution to easily interact with different features offered on the platform within the Web3 setting.mDigiTao will keep its community updated on their socials when the members utility token is officially launched.
Hedge3 is a decentralised “hedge funds” marketplace designed to aggregate public vaults from decentralised finance protocols like Enzyme. Their mission is to simplify and streamline the investment process in decentralized funds and vaults, allowing users to easily access a wide array of investment strategies managed by experienced fund managers.
By integrating with Enzyme, Hedge3 allows investors to confidently invest in diverse, high-quality public investment funds. Hedge3 believes that Enzyme’s secure, transparent, and composable infrastructure perfectly aligns with their goal to empower users with a seamless investment experience.
In their future plans, Hedge3 aims to introduce features like index funds, investor leaderboards, and a native token to incentivize our users. These features will provide a comprehensive solution for investing in the rapidly evolving crypto market. Hedge3 is dedicated to making decentralised finance accessible and straightforward for everyone, regardless of their level of expertise.
My Crypto Index
My Crypto Index (MCI) is a DeFi platform where users can invest in crypto index funds and build portfolios tailored to their risk appetite. With MCI, users can access cutting-edge crypto investment technology, education, and industry expertise. MCI provides a straightforward, cost-effective, and less risky way to invest in crypto.
Enzyme’s DeFi operating system allows greater flexibility in MCI’s portfolio management and construction. MCI utilises Enzyme’s DeFi OS to plug into existing web3 infrastructure, tools, and resources. The platform is connected with a range of DeFi protocols that provides access to a broad range of investment strategies that are leveraged to help maximise returns for investors.
There is excellent synergy between the MCI and Enzyme platforms, and MCI will continue to work with Enzyme to enhance the overall ecosystem of decentralised asset management. One area of particular promise is collaborating on developing better management and on-chain compliance tools for asset managers. By leveraging the expertise of MCI in this area, Enzyme could enhance its tooling and regulatory compliance capabilities, making it the standard solution for institutional asset managers.
By providing a social/collaborative investment platform, Troop Finance is empowering communities to invest better together. Built on Lens Protocol, Troop Finance enables anyone to become a member and contribute to the curation of investment portfolios. This community-managed approach to investing addresses many of the challenges faced by retail investors, from limited monetization options for community thought-leaders to a lack of trust in traditional financial institutions.
At a later date, Troop Finance will use Enzyme’s infrastructure to enable groups of people to crowdsource investment ideas without pooling funds. This means that the token representing a share in the Enzyme vault is not exposed to supply and demand dynamics, but rather represents the value of the underlying assets. Additionally, Troop Finance leverages Enzyme’s curation tools to ensure the liquidity of the tokens and strategies included in the community-curated portfolios.
The next step for Troop Finance is to integrate with Discord and Telegram bots, allowing investment strategies to be shared within “alpha groups.” We are excited to watch Troop Finance as they bring their vision of a web 3.0 native SocialFi investment hub to life on Enzyme.
That’s not all — we are also excited to announce that several new projects will be building on Enzyme, too. This includes 401 Financial, who are transforming the path to financial freedom with next generation financial planning services, as well as several regulated crypto banks. Further details will be released in the coming months.
In conclusion, the diverse range of projects building on Enzyme highlights the growing potential of decentralized finance and the innovative ways in which Enzyme’s infrastructure is being utilised.
From sophisticated automated trading strategies to collaborative social investment platforms, Enzyme is empowering projects to create more secure, transparent, and efficient financial services.
Remember, we are here to support your journey every step of the way. Don’t hesitate to reach out to our community for guidance, or share your experiences and ideas with us. If you have a particularly compelling idea, or you’d like to build products and services on top of Enzyme, you can read about the Enzyme Grant Programme here.
Together, we can continue to push the boundaries of what’s possible in the realm of decentralised finance.