Background

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Background
Brief History 
Enzyme has rebranded from Melon Protocol. The protocol has been on mainnet since Feb 2019 and was the first DeFi protocol to decentralise its governance. Enzyme v2 was launched to mainnet in Jan 2021 and is a completely re-architected protocol with modularity and extensibility at the core of its design.
Enzyme Token
Enzyme’s token is MLN and has a dual use:
1) used to pay fees to the network by users, and 
2) used to incentivise developers to build on Enzyme. 
Enzyme Protocol Fee
This release implements a protocol fee, which is charged by minting additional vault shares to an Enzyme Council owned contract. 
Initially applied at 50 bps of AUM but can be bought back by the vault manager for 25 bps.
The Enzyme Council owned shares can be bought back in the equivalent value of $MLN, either by the vault manager at 25 bps or by the Enzyme Council at 50 bps. The $MLN is then burned. The “50% discount” encourages the vault manager to take care of this process rather than the Council having to. 
The protocol fee is charged each time that a fund:
receives a new deposit
has shares redeemed
migrates to a new release or reconfigures vault settings without migrating
A more detailed discussion of the mechanics of the protocol fee can be found here.
Governance
Enzyme is governed by a DAO known as the Enzyme Council which is made up of technical experts and user representatives. A complete discussion of the protocol's governance can be found here.
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Strategies & Integrations
Security
Last modified 5mo ago
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