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Babbitt Information (ID: bitcoin8btc)

Babbitt Information (ID: bitcoin8btc)

1. , Author: Mona El Isa, Compiler: Overnight Porridge, published with permission.

2. News on February 25, following the launch of its v2 version, the decentralized asset management protocol Enzyme (formerly Melon) announced that it will release a new version in the next few weeks: Sulu, which will be a one-stop DeFi savings store.

3. It is reported that the core of Enzyme v2 is security, customizability, composability, upgradeability and improving gas efficiency, while Sulu's new architecture mainly focuses on scalability and composability. The highlights of this upgrade plan include:

4. loan;

5. transferability of treasury shares;

6. Integrate Curve asset pool;

7. Integrated Idle;

8. Integrate AAVE;

9. Integrate Balancer;

Support pledge ETH;

Multi-protocol liquidity mining (expanding current possibilities);

Explore the possibility of compensating portfolio managers for gas costs;

native lending

Previously, Enzyme has supported the lending function, and it will also support the borrowing function in the next version. This is a very useful feature for portfolio managers (TradFi and DeFi) who hold long-term positions without yield. In DeFi, ETH is a good example. On its own, holding it has almost zero yield, but you may want to hold it for a long time because you believe it will rise to $10,000. Imagine that you can borrow DAI with your ETH as collateral, and now DAI earns much higher interest than ETH on the lending agreement.

Then, you can deposit DAI into the lending agreement to earn interest, or perform liquidity mining (such as COMP), the possibilities are endless, and Enzyme aims to implement them in the next version.

Vault Token Transferability

• As of now, any Vault Token Shares are non-transferable, and we know that many users would like to be able to trade these Token Shares, enabling a plethora of new use cases! Every vault built on top of Enzyme has its own token, and if these tokens are transferable, new use cases can be realized.

• Use Case One: Pre-Seed Vault

• Rebalancing costs can get quite expensive! Imagine if you never needed to rebalance, or if you only rebalanced at certain intervals. One of the use cases is to create closed pools where liquidity providers (LPs) are rewarded. How is this possible?

• Decide on a passive strategy;

• Form a group of early vault managers to pre-seed this vault with funds (e.g. target 25000 ETH).

• Once the goal is reached, the vault is closed and any new storage users are prohibited from entering;

• Deposit 100 ETH into the Gnosis Safe wallet;

• Create a vault on Enzyme using Gnosis-Safe and choose a fee option you want to embed;

• When the user deposits 50 ETH into this vault, he will get the vault token;

• Gnosis Safe will earn fees from this vault and the Uniswap asset pool;

benefit:

• Appropriate distribution of fees among Gnosis Safe seed depositors;

• Periodically reopen vaults as needed for additional seeding phases;

• benefit:

Two sources of fee income (regardless of your embedded treasury fees and liquidity fees);

Save gas: Due to the secondary market, there is no need for regular rebalancing;

Users can buy tokens on Uniswap, so they can pay less gas fees;

Use Case Two: Tokenize Fees to Incentivize Early Storage Users

Generally, people like to look at a fund manager's long-term track record before investing. But what if we reversed the incentive process to encourage early support? If fees are tokenized, portfolio managers can incentivize LPs with liquidity mining rewards, which opens up endless possibilities.

Integrated Curve pool

Curve pools have always been a huge source of DeFi liquidity, depositing into Curve pools and earning tokens by providing liquidity has become very profitable, and Enzyme is expected to support this feature soon.

Integrated Idle

Idle provides users with a range of risk-adjusted methods to achieve the best returns on stablecoins and wBTC. As of now, the best plan on Idle has an annualized rate of return of 44%, while its risk-adjusted return method has an annual return of about 14%.

In addition, depositing into these pools can also mine IDLE tokens to further increase returns.

Integrated AAVE

The lending feature has been implemented on Enzyme v2 for a while, but currently it does not have access to AAVE's aToken. And in the next release, Enzyme will allow users to access the entire aToken family. AAVE's range of lending rates and assets offers exciting possibilities for treasury managers.

Integrated Balancer

Enzyme has supported Balancer liquidity for some time (via Paraswap), but the project side also hopes to increase support for the pool. This will enable users to deposit liquidity into balancer pools and earn LP rewards.

Support ETH pledge

There are currently two forms of encapsulated ETH 2.0 staking services (provided by Stakehound and Lido), and in the next version, Enzyme will also support these staking services, so that managers can obtain additional benefits.

Multi-protocol liquidity mining

In addition to liquidity mining on Uniswap and Compound, Enzyme will support more liquidity mining protocols related to the aforementioned integrations.

Explore the possibility of gas fee compensation for portfolio managers

The gas fee for transaction costs is usually from the wallet of the portfolio manager. As of now, this has not been an issue, but we have noticed that a large number of community members would like to have this cost charged to the treasury. This helps spread the cost burden proportionally across all storage users in the vault.

• MIP7 Proposal

• Work on MIP7 has begun, with the first phase being the implementation of a simple asset management fee, which was approved by Enzyme’s council back in September and later endorsed by user representatives late last year. This implementation will continue over the next few weeks while exploring other proposals for a possible second phase of the token economy, including staking, referral fees, and more.

Overall, Enzyme aims to be the core infrastructure for asset storage users looking to gain DeFi exposure through vaults, with the benefits of: