Enzyme Questions Answered
Everything you've wondered about the Enzyme platform — vaults, fees, security, supported assets, and more. Can't find what you need? Visit our about page or head back to the main app.
What exactly is Enzyme, and how does it differ from a regular exchange?
Enzyme is a non-custodial, on-chain asset management protocol built on Ethereum. It lets fund managers create vaults — smart contract-based investment vehicles — and allows depositors to invest into those vaults without ever handing over private keys. Unlike a regular exchange where you trade tokens directly, the Enzyme platform lets professional or semi-professional managers run strategies on your behalf while everything stays verifiable on-chain. Your funds live in the smart contract, not on any company's server. That's a meaningful difference.
How do vaults on Enzyme actually work?
When a manager deploys a vault via the Enzyme platform, they configure a set of policies — which assets are allowed, who can deposit, what fees apply, and so on. Depositors then send tokens to that vault's smart contract address and receive vault shares in return. Those shares represent a proportional ownership of the vault's holdings. As the vault's underlying assets grow in value, so does the price per share. Redemptions work in the opposite direction: you return shares and receive your proportional cut of the vault's current holdings. The whole thing runs on Ethereum mainnet, with additional deployments on Polygon.
Is Enzyme safe? Has the protocol been audited?
The Enzyme protocol has undergone multiple independent security audits since its first release in 2019. Firms including OpenZeppelin and Chain Security have reviewed the codebase across different protocol versions — Sulu being the most recent major upgrade. There is also an active bug bounty program on Immunefi with meaningful rewards for critical findings. That said, no smart contract system is entirely without risk. Bugs can exist despite audits, and DeFi carries inherent volatility and technical risk. You should read the protocol documentation before depositing.
What assets and protocols does Enzyme support?
The Enzyme platform supports over 200 assets on Ethereum, including major tokens like ETH, WBTC, USDC, DAI, stETH, and a wide range of DeFi-native assets. Integration-wise, vault managers can interact with Uniswap v2 and v3, Curve, Convex, Aave, Compound, Yearn, Spark, StakeWise, and several others directly from within a vault's strategy. New integrations are proposed and approved through the Enzyme governance process. The list of supported assets grows over time — check the Discover page for the current state.
What fees do vault managers charge, and does Enzyme itself take a cut?
Fee structures are set individually by each vault manager and can include management fees, performance fees, or entrance/exit fees — all defined at vault creation time and visible on-chain. The Enzyme protocol itself collects a network-level fee on AUM, which goes to the protocol treasury managed by MLN token holders. This protocol fee is separate from whatever the individual vault manager charges. Before depositing into any vault, you can inspect the fee configuration directly on the vault's detail page. There are no hidden costs added after you're in.
Can I deposit if I'm not an experienced DeFi user?
Technically, yes — you just need a compatible wallet like MetaMask, Rabby, or WalletConnect-compatible options, plus the token you want to deposit. The interface on the Enzyme platform is reasonably approachable. That said, understanding what each vault does matters. Some vaults pursue aggressive yield strategies involving leverage or illiquid positions; others hold stETH and do very little else. Reading the vault description and checking recent performance before committing funds is worth a few minutes of your time. The info page covers more background on how the protocol is structured.
How do I create my own vault on Enzyme?
Creating a vault requires signing in with a wallet and navigating to the vault creation flow in the app. You'll configure things like vault name, denomination asset (the token in which performance is measured), fee settings, allowed depositors, and which DeFi integrations you want active. There is a small gas cost to deploy the vault contract. Once deployed, the vault is live on-chain and you can begin managing it immediately. Detailed step-by-step instructions live in the official Enzyme documentation at docs.enzyme.finance.
What is the MLN token and do I need it to use Enzyme?
MLN is the native governance token of the Enzyme ecosystem, originally launched in 2017. MLN holders participate in protocol governance — voting on upgrades, fee parameters, and which new integrations to add. You do not need MLN to deposit into vaults or to create one as a manager. The token is primarily relevant if you want a say in how the protocol evolves, or if you're interested in the protocol fee economics. MLN is traded on major DEXes and some centralized exchanges.
Why would I use Enzyme instead of just holding tokens in my own wallet?
Holding tokens in your wallet means you're doing all the strategy work yourself — monitoring markets, rebalancing, chasing yields across protocols. Enzyme vaults let you delegate that to managers who specialize in it, while you retain the ability to withdraw at any time. Think of it like the difference between managing your own stock portfolio versus putting money into a fund run by someone who watches markets full-time. The key distinction from traditional funds: everything is transparent and on-chain. You can verify the vault's holdings at any block.
What happens to my funds if the vault manager disappears or stops managing the vault?
Your funds stay in the vault's smart contract — they don't go anywhere just because the manager becomes inactive. If a vault is abandoned, depositors can still redeem their shares for the underlying assets at any time. No single person has custody of the assets. The smart contract enforces all rules. Some vaults implement a timelock on certain manager actions precisely to give depositors time to exit if they disagree with a proposed change. This is one of the structural advantages of on-chain asset management versus trusting a traditional fund manager.
Does Enzyme work on networks other than Ethereum?
The primary deployment of the Enzyme protocol is on Ethereum mainnet, where the vast majority of assets under management sit. There is also a deployment on Polygon, which some managers use for lower-fee operations. The app interface lets you switch networks using the network selector in the top navigation. Additional chain deployments are subject to governance decisions. Ethereum remains the dominant home for the protocol given its security guarantees and the depth of DeFi liquidity available there.
How transparent are vault strategies? Can I see what a vault holds at any time?
Full transparency is one of the defining properties of the Enzyme platform. Every vault's holdings are readable directly from the blockchain — no manager can hide positions or misrepresent performance. The app displays current portfolio composition, historical NAV (net asset value) per share, and transaction history. Third-party analytics tools can also query the same data independently. This level of disclosure simply isn't available in traditional fund structures, where you typically get quarterly reports at best.
What is the difference between the Sulu release and earlier versions of Enzyme?
Sulu is the name given to the most recent major protocol upgrade, building on earlier versions (Melon Protocol v1, Sulu v7, and subsequent iterations). The Sulu architecture introduced a more modular design, making it easier to add new DeFi integrations without touching core vault logic. It also brought improved fee configurations, better gas efficiency in certain operations, and a richer policy system for managers. Older vaults running on previous protocol versions remain functional but don't benefit from new integrations added to Sulu. Migration is opt-in.
Can Enzyme vaults access lending protocols like Aave or Compound?
Yes. Vault managers with the appropriate integrations enabled can deposit vault assets into Aave v2, Aave v3, Compound v2, and Spark — earning lending yield directly within the vault strategy. This means a vault's denomination asset can be working in a money market rather than sitting idle. The integration is governed by on-chain adapter contracts that the Enzyme protocol maintains. Managers can't move funds to arbitrary addresses; they can only interact with approved, audited integration contracts. That constraint is what keeps depositors' money contained within the known surface area of the vault.