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Enzyme Finance Integrates Aave To Its Ecosystem To Allow Portfolio Managers To Monetize New Yields

Enzyme Finance Integrates Aave To Its Ecosystem To Allow Portfolio Managers To Monetize New Yields

Enzyme Finance, a decentralized asset management infrastructure, can now support depositing on the Aave protocol. This will allow portfolio managers in the enzyme ecosystem to monetize new yields.

Enzyme tweeted the announcement on Twitter, saying:

Another week, another #DeFi building block is brought to Enzyme Vault Managers. We're delighted to support @AaveAave lending as part of the #Sulu journey starting... right now!

What Is Aave Offering

Enzyme vault managers hold long-term tokens in the Aave Ecosystem, and these tokens are not usually traded in the short term. Aave helps vault managers to earn an additional yield on these tokens. 

The tokens available for lending are listed: Aave, BAL, BUSD, CRV, DAI, ENJ, KNC, LINK, MANA, MKR, REN, SNX, SUSDC, USDT, WBTC, WETH, YFI, and ZRX. Aave is the third largest project in DeFi with >$5 billion locked up in its contracts.

What is Enzyme Finance?

Enzyme Finance, formerly known as Melon, is a decentralized asset management infrastructure built on Ethereum. It serves two types of users; Portfolio managers and Subscribers to portfolios. Enzyme allows portfolio managers to build, scale and monetize investment strategies of their choice - ETF’s, market making, yield farming, etc. Portfolio managers also gain the advantage of various building blocks offered by the ecosystem. 

Enzyme allows users to search and subscribe to strategies with a proven track record, making research processes and portfolio management simpler for subscribers to portfolios. Users can do this while maintaining control of their assets with fully transparent terms. 

Enzyme’s native token is $MLN, used to pay fees to the network, and incentivizes developers to build on the ecosystem. The DAO that governs it is known as the Enzyme Council made up of user representatives and technical experts.

What Is Aave?

Aave is an open-source non-custodial protocol on Ethereum for decentralized lending and borrowing. 

The protocol mints ERC20 compliant aTokens at a ratio of 1:1 to supplied assets for lenders. The interest starts compounding continuously, seen in the steady increase in the lender's amount of aTokens. 

While users can borrow against most supplied assets, the collateralization ratio and liquidation threshold depend on the asset. The liquidation penalty depends on this asset too. Users can get a bonus for liquidating an unhealthy loan. 

Aave keeps a liquidity reserve to ensure withdrawal at any time. The protocol lets borrowers opt-in and out of a stable rate that changes less often. Aave offers flash loans that are trustless and uncollateralized. Borrowing and repayment must happen in the same transaction. This feature is aimed at developers leading to innovative uses of DeFi. Aave's native token is AAVE.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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