Alrighty, let’s dive into the exciting world of Enzyme Finance, formerly known as Melon Protocol!
What is Enzyme Finance (MLN)?
Melon Protocol, now Enzyme Finance, is a super cool protocol built on Ethereum (ETH) that lets you create, manage, and invest in your very own custom crypto asset management vehicles. The aim? To decentralize traditional asset management, which has been the playground of professional financial advisors and firms for ages. MLN, the Enzyme cryptocurrency, works its magic to lower the barriers to entry for asset management, making it accessible to more folks around the globe.
Who Created Enzyme Finance?
Enzyme Finance, originally Melon, was cooked up by Melonport, a private company founded in 2016 by Mona El Isa, a former bigwig at Goldman Sachs, and mathematician Rito Trinkler. They were the brainiacs behind this awesome project. Between 2017 and 2018, they whipped up 1,250,000 MLN coins and raised a sweet $2.9 million through an initial coin offering (ICO) in 2017. After delivering the first version of the Enzyme Finance protocol in 2019, Melonport dissolved and passed the baton to the Melon Council, a decentralized autonomous organization (DAO). Now, the Melon Council, operated by a bunch of smart contracts, is all about keeping the Enzyme ecosystem buzzing with activity and innovation.
How Does Enzyme Finance Work?
Enzyme Finance is like a treasure trove of smart contracts, all buzzing with activity on the Ethereum blockchain. And guess what? The fees for transactions are paid in good ol’ ether. This covers the cost of using Ethereum’s computing power and the Enzyme software. Now, let’s break it down into two layers:
The Fund Layer: Here’s where the magic happens! Users can launch and control the funds that others can invest in. Each fund has two parts:
- The Hub: This is the core part of the fund layer. It provides all the tools needed to set up a fund and tracks the components that make up the funds.
- The Spokes: These smart contracts define the funds created by each fund manager and contribute specific services to the fund. For example, the Vault is used for storing tokens on behalf of the funds, and the Shares keep track of fund ownership.
The Infrastructure Layer: This is where the Melon Council, Enzyme’s DAO, struts its stuff. Some cool examples of infrastructure contracts include:
- The ‘Adapter’ Contract: This links certain assets to price feeds for trading.
- The ‘Engine’ Contract: This buys MLN for ETH to help cover certain computations.
- The ‘Price Source’ Contract: This provides general info needed for actions within the funds.
Why Does MLN Have Value?
MLN, the Enzyme cryptocurrency, is the fuel that keeps the engine running. It’s used to execute fund operations and for voting on the protocol’s software policies, such as its inflation rate. With a fixed amount of 1,250,000 MLN coins created and distributed during the contribution period, plus 300,600 MLN minted each year, there’s plenty to go around. The protocol also follows a buy-and-burn model: the collected ETH is converted to MLN and burned, effectively taking them out of circulation. This gives MLN coins more value in the long run!
Why Should I Use MLN?
Enzyme Finance is like the bridge between asset management companies and investors, and it’s a super cool experiment in applying cryptocurrency to traditional finance. If you wanna build a fully audited and transparent fund on the blockchain, this is your spot! Plus, you can invest without knowing or trusting a fund manager to manage your money, as managers are bound by specified smart contracts on Enzyme. And traders might wanna add MLN coins to their portfolio if they believe investors will continue to use the platform and that it will play a greater role in crypto asset management.
So there you have it, folks! Enzyme Finance, the hot new kid on the crypto block, turning the world of asset management on its head!
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