Key Takeaways:
- Enzyme Finance hinted its next release ‘Sulu’ might include in-vault staking support.
- Enzyme’s native token Melon (MLN) jumped 70% between high to low levels on August 26.
NEW DELHI (CoinChapter.com) — Enzyme Finance, an Ethereum-based decentralized on-chain asset management protocol, had announced an upcoming version update called ‘Sulu’ in February. A key feature of the proposed update included support for Ethereum staking using wrapped ETH.
The DeFi firm recently shared a tweet stating that in-vault staking might be a part of the Sulu update. As a result, the protocol’s native token, Melon (MLN), jumped 70.8% between low ($93.672) to high ($160) levels on August 26.
Enzyme’s Sulu Update
In its February announcement, Enzyme shared some features of the proposed Sulu update.
For example, the DeFi asset manager already supports lending and now plans to enable borrowing as well. Other updates include transferable vault tokens and integration with Aave’s aTokens (Aava interest-bearing tokens), Idle, and Curve Pool.
Enzyme Finance enables the setup and management of pooled on-chain digital assets.
Using Enzyme, investors can access multiple DeFi products through a single interface. In addition, the protocol allows users to create and manage their funds or invest in funds created by others. In a way, Enzyme’s functions are similar to that of a traditional Asset Management company.
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Enzyme protocol has two layers – the Fund layer and the Infrastructure layer.
The Fund layer is where network participants create and share their investment funds with other users. Furthermore, the Fund layer consists of the Hub (core part of the fund with all the necessary tools) and the Spokes (Smart contracts that contribute specific services to the fund).
Vaults store tokens on behalf of funds, using smart contracts to provide security and dynamic access control rules.
Earlier, Enzyme had announced support for staked ETH (stETH) by Stakehound in March. However, as per Enzyme’s cryptic tweet, it seems the network plans to include in-vault staking in its Sulu update. Staking generates passive income for crypto holders on proof-of-stake blockchains.
When users stake their cryptocurrency, it means lending their coins to the network for validating transactions.
In exchange, the network rewards users with additional tokens, either native tokens or wrapped tokens. In simple terms, staking is similar to lending money and earning interest on it.
With support for in-vault staking, Enzyme users would earn revenue from two sources- the pool’s income and staking’s income.
MLN Prices Rocket Upwards
Probably influenced by Enzyme’s tweet, its native token MLN rose by 70% on Thursday before pulling back, ending the day with a 32.9% gain between open and close levels.
On August 27, MLN prices jumped 28.04% between the day’s low ($121) and high ($155) levels. However, prices corrected, and the Enzyme token registered an intraday gain of 0.81%
MLN prices are bullish in all time horizons, as the 50-Day (Yellow) and 200-Day (Green) Moving Average trendlines show. Moreover, the Enzyme token’s 26-Day (Red) exponential MA provides support at $96.24, while the 50-Day MA line acts as support at $88.493.
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Immediate support for MLN lies at $116, which acted as resistance for the altcoin between June 10 to August 26.
MLN bulls likely try to consolidate prices at the immediate resistance of $140 before targeting the next resistance at $148.2. If prices breach above $148.2, resistance at $158 will come into play.
Thursday’s meteoric jump also created a bullish crossover in MLN’s MACD.
Bars on the MACD histogram turned positive after ten days ( August 16-25). In detail, the histogram plots the difference between the MACD line (difference between 12-Day and 26-Day EMA) and the MACD signal line (9-Day EMA of MACD).
The MACD line moved above its signal line, indicating the momentum has turned bullish for MLN.
However, the relative strength index for MLN is at 76.29, which puts the Enzyme token into the overbought category. In addition, an RSI above 70 often forecasts trend reversal for assets, which may worry MLN bulls.
At the time of writing, MLN was trading at $128, up 1.38% on the day.
