What Is Enzyme (MLN)? The Token for On-Chain Asset Management

LeeMaimai

/Oct 24, 2025

Key Takeaways

• Enzyme enables transparent and programmable asset management through non-custodial vaults.

• MLN token plays a crucial role in the protocol's economy, facilitating fees and governance.

• Users can leverage DeFi integrations and risk controls to optimize their investment strategies.

• Security and due diligence are essential when managing assets and using MLN.

On-chain asset management is one of the most practical use cases in decentralized finance, allowing fund managers, DAOs, and sophisticated users to deploy capital transparently with programmable rules and auditable performance. Enzyme (formerly Melon) is a protocol purpose-built for this. Its native token, MLN, aligns incentives and pays for core protocol functions as strategies are created and managed on-chain. This article explains how Enzyme works, what MLN does, and how you can participate safely.

A quick primer: what Enzyme is

Enzyme is a smart contract protocol for creating and operating non-custodial investment vehicles called “vaults.” A vault can hold and allocate assets across integrated DeFi venues under a defined set of policies (e.g., asset universes, deposit/withdrawal rules, fees). Enzyme emphasizes transparency, modularity, and risk controls so that strategies can be created, audited, and repeated with fewer operational overheads than traditional fund setups. Explore the project and its stack via the official site and docs:

Official site: Enzyme
Technical documentation: Enzyme documentation

Context: Enzyme lives in the broader DeFi ecosystem, where open, composable financial primitives enable permissionless strategies. For a refresher on why this matters, see Ethereum’s overview of DeFi on ethereum.org.

How Enzyme works (at a glance)

Vault architecture: Each strategy operates through a dedicated vault contract that holds assets, tracks accounting (NAV, shares), and enforces policies. Managers configure parameters like accepted assets, deposit gates, redemption logic, fees, and adapters.
Integrations and adapters: Enzyme provides adapters to interact with external protocols (e.g., DEXs, money markets, yield strategies). This lets a manager route capital to DeFi venues without writing bespoke integration code for each vault.
Policies and guardrails: Risk controls can restrict asset universes, concentration, leverage, and more. Management and performance fee modules are standardized to ensure predictable behavior.
Transparency: On-chain positions, fees, and historical performance are viewable in real time. This is central to investor trust and auditability.
Extensibility: Because it’s modular, Enzyme can add or upgrade adapters and policies as DeFi evolves. See the docs for architecture details and security assumptions in the Security section of the documentation.

What MLN does in the Enzyme economy

MLN is Enzyme’s native token. At a high level:

Protocol fees: Activity on the protocol incurs fees that are specified by Enzyme’s design; MLN plays a role in how these are paid, routed, or settled within the protocol economy. See token and fee mechanics in the Enzyme documentation for the latest implementation details.
Governance and alignment: MLN aligns incentives across users, builders, and the Enzyme Council. You can track circulating supply and market data on CoinGecko and CoinMarketCap.

Because tokenomics and fee routing can evolve, always verify the latest design in the official docs and governance channels linked from the Enzyme site.

Helpful references:

Enzyme documentation
CoinGecko: Enzyme (MLN)
CoinMarketCap: Enzyme (MLN)

Who uses Enzyme and why

Crypto-native managers: Launch strategies quickly with built-in fee modules, risk policies, and DeFi integrations—no need to custody client assets.
DAOs and treasuries: Operate treasury allocations via transparent vaults with policy guardrails and auditability.
Sophisticated individuals or small teams: Run quant or yield strategies with programmatic rules and reproducible workflows.

Key advantages:

Non-custodial by design; investors maintain on-chain share ownership.
Composability with DeFi primitives and integrations.
Clear fee logic and on-chain performance data.

Current themes shaping on-chain asset management in 2025

L2 adoption: User demand for lower fees and faster settlement continues pushing activity to rollups, which favors modular protocols able to extend to multiple execution environments.
Tokenized assets and treasuries: Institutions and DAOs seek transparent, rule-based structures for digital and tokenized assets. Protocols that emphasize risk controls and reporting remain well positioned.
Risk and policy tooling: Stronger policy modules (concentration limits, allow lists, and time-locked changes) are becoming table stakes for professionalized on-chain strategies.

For foundational context on why on-chain finance is scaling, see Ethereum’s DeFi overview on ethereum.org.

Risks to understand before using Enzyme or MLN

Smart contract risk: Vulnerabilities can lead to loss of funds. Review Enzyme’s Security documentation and audit materials linked in the docs.
Integration risk: Adapters rely on external protocols; any upstream failure can impact vaults.
Oracle and market risk: Mispriced feeds or sudden liquidity shocks can impair strategies.
Manager risk: Policies reduce—but do not remove—operational and strategy risk.
Regulatory and compliance considerations: Depending on jurisdiction, operating an investment product may entail regulatory obligations.

Always review the latest Security and Risk sections in the Enzyme documentation and perform independent due diligence.

How to acquire and store MLN

Market access: MLN is listed on major exchanges and DEXs. Check live listings and liquidity via CoinGecko or CoinMarketCap.
Storage: Because MLN is an Ethereum-based asset, you can store it in any EVM-compatible wallet. For security, consider keeping long-term holdings in a hardware wallet and interacting with DeFi through a connected interface (e.g., via WalletConnect).

Tip: WalletConnect lets you connect wallets to dApps without exposing private keys. Learn more at WalletConnect.

Using a hardware wallet with Enzyme

When managing vaults or holding MLN, using a hardware wallet can meaningfully reduce key theft risk:

Offline key security: Private keys never leave the secure element and are not exposed to your browser or dApp.
Transaction verification: You confirm vault interactions (e.g., share mints, trades, policy updates) on a trusted screen before signing.
EVM and DeFi compatibility: For Enzyme use, this typically means support for Ethereum, EVM chains, and connections via WalletConnect or browser extensions.

OneKey is a popular hardware wallet choice among DeFi users thanks to open-source design, multi-chain support, and smooth connectivity workflows (WalletConnect, browser extension, and mobile). If you’re deploying capital through Enzyme vaults or holding MLN for the long term, using a device like OneKey helps minimize key compromise and signing mistakes while keeping the UX approachable for frequent DeFi interactions.

Getting started with Enzyme

Read the docs: Understand vaults, policies, fees, and integrations in the Enzyme documentation.
Define your strategy: Specify assets, risk controls, and target integrations.
Set up secure key management: Use a hardware wallet for the deployer/manager address.
Test on a small scale: Dry-run configurations and deposits before scaling.
Monitor and iterate: Track performance, fees, and policy efficacy; update guardrails as needed.

The bottom line

Enzyme turns on-chain asset management into a transparent, programmable, and auditable workflow. MLN underpins the protocol’s economics and incentive alignment. If you plan to manage vaults or hold MLN, combine careful due diligence with strong key security. A hardware wallet like OneKey, paired with WalletConnect and standard EVM tooling, can provide the right mix of safety and usability for day-to-day strategy operations.

References and further reading: