Enzyme, powered by the MLN token, is a digital asset management platform that strives to streamline the management of digital assets. It provides a unified, user-friendly on-chain system that allows access to digital assets and DeFi from a single application. Enzyme aims to eliminate operational risks associated with managing crypto and DeFi assets without purpose-built smart-contract permissions and controls. It provides a robust suite of programmable risk management and governance tools to protect assets. Enzyme also maintains sophisticated on-chain data pipelines, ensuring data is auditable and trustworthy, promoting a future based on transparency and auditability.

Enzyme operates through a system of vaults, each representing a unique portfolio with its own strategy, asset allocation, and investment goals. Users can create multiple vaults and customize each one according to their preferences. Enzyme provides tools for managing and monitoring these portfolios, including performance metrics and detailed reporting. This makes it easy for users to track the performance of their assets and make informed decisions about how to manage their portfolios over time. Enzyme also provides real-time reporting and performance dashboards with key performance and risk metrics, and reports that provide easily readable and provable data on all transactions at any point in history.

Enzyme has a wide range of potential use cases. For instance, it can be used for treasury management, allowing organizations to manage their treasury simply, securely, and transparently. It can also be used to set up an on-chain DeFi fund, with Enzyme taking care of all fund operations and administration using smart-contract automation. Additionally, users can build their own indexes in minutes and have them rebalance automatically on-chain or off-chain. Enzyme also allows anyone to build, scale, and monetize investment strategies using the protocol's non-custodial Vaults. These strategies can span the spectrum from traditional discretionary allocators to DeFi-native combinations of any of the primitives with which Enzyme integrates.

Enzyme, formerly known as the Melon Protocol, was initially developed by the private company Melonport. After the dissolution of Melonport, the protocol was transferred to the Enzyme Council. The protocol has been on the mainnet since February 2019 and was the first DeFi protocol to decentralize its governance. Enzyme v2, a completely re-architected protocol with modularity and extensibility at the core of its design, was launched to the mainnet in January 2021. The Enzyme token, MLN, is used to access the MLN network and incentivize developers to build on Enzyme.

Creating and managing a fund on Enzyme involves setting up a vault, which is a straightforward process. First, you connect your wallet to the Enzyme app, ensuring that you are on the correct Ethereum or Polygon network. Then, locate the "Create a vault" button in the left-hand menu and click on it. Select the type of vault you wish to create and follow the steps provided to configure your vault. Once your vault is set up, you can manage your fund using Enzyme's range of tools. These include swaps, providing resources, accessing resources, staking, governance delegation, and access to 24/7 NAV. You can monitor your fund's performance in real-time using key performance and risk metrics provided by Enzyme. The platform strives to offer a range of tools for managing assets in a transparent and efficient manner within the DeFi ecosystem.

Enzyme protocol handles risk management through a multi-faceted approach. It strives to identify and analyze potential risks, then implements strategies to mitigate them. This process involves recognizing recurring risks, prioritizing risk mitigation, and monitoring the established plan. The protocol employs various risk management tools and techniques to assist fund managers in mitigating risks. These include risk registers for identifying and describing risks, root cause analysis to identify fundamental risks, and SWOT analysis to help identify strengths, weaknesses, opportunities, and threats. The protocol also employs risk assessment templates and probability and impact matrices to prioritize and manage risks. It also leverages risk data quality assessment techniques to understand the accuracy, reliability, quality, and integrity of the risk data. Lastly, brainstorming sessions involving experts, team members, and stakeholders are conducted to assess potential risks.

The Enzyme Council plays a crucial role in the governance of the Enzyme protocol. It consists of the Enzyme Technical Council (ETC) and representatives from Enzyme User Representatives (EUR). The ETC provides technical expertise and ensures swift decision-making, while the EUR gathers, prioritizes, and delivers user feedback to the Enzyme Council. The Council is bound by fiduciary duties, meaning its members are obligated to act in the interest of the Enzyme protocol. Users have the opportunity to elect delegates to represent their interests on the Enzyme Council. The ETC and EURs collaborate and work to understand and address the needs of the users of the Enzyme network. This structure seeks to adapt to the needs of Enzyme’s use cases and broaden its ecosystem and community participants.

Enzyme aims to provide transparency in fund performance and reporting for users through a variety of features and tools. It offers real-time performance metrics, enabling users to track the value of their holdings and observe changes in these holdings over time. Users have the ability to view detailed information about their holdings, including the value, historical performance, and any associated fees or expenses. Enzyme also strives to provide transparency and accountability through on-chain data and smart contract audits. Users have the ability to view the code and logic of the smart contracts utilized by the platform, ensuring that the process is transparent. Enzyme maintains sophisticated on-chain data pipelines that ensure data is auditable and trustworthy, enabling a different approach based on the principles of transparency and auditability.

Enzyme offers a method designed for safety, ease, and efficiency to create and operate an asset management approach with built-in accounting tools. Enzyme connects fund managers to a pool of potential investors, making it easier to attract and build a community of supporters. It also provides access to a variety of digital assets and protocols. Enzyme is integrated with price oracles for real-time pricing. Key features of Enzyme include non-custodial storage, elimination of human error, transparency, and flexible subscription and withdrawal. Enzyme allows fund managers to customize their vaults, host them on a private URL, and apply their own branding across their landing page.