Unido EP vs Enzyme Finance — Bridging Institutions to Crypto Markets
To demonstrate the use case and commercial viability of Unido Enterprise Platform (EP), it is helpful to compare with an established digital asset management platform which has built in DeFi options. Enzyme (MLN) has been selected for competitor comparison and analysis, given it launched in July 2016 and provides similar services and features as EP, albeit delivered in very different formats.
Enzyme is delivered in two parts, a front end website for asset management and an Ethereum-native blockchain protocol to deploy custom liquidity pools, allowing investors to deploy their digital assets (limited to Ethereum-based tokens) in yield returning activities, without the use of investment managers, hedge funds, or other fund management companies.
Given on-chain assets on the Enzyme platform are governed by a client’s single private key, the product offering is only suitable for individuals willing to take responsibility for their private key. There is no multi party signoff or compatibility with 3rd party signing custodians, meaning partnerships comprising several members, or sophisticated organisations such as enterprises and asset managers are unable to utilise these types of solutions, due to lack of corporate governance processes around security and operation of transaction signing.
In comparison, the product offering of EP delivers an integrated custodial function, which is cross chain interoperable, and has blockchain-level multi party sign-off for private key operation, making it suitable for all investor classes, including the underserved enterprise and asset manager investor segment. EP offers a Defi dashboard, which aggregates various 3rd party yield farming and staking solutions over various digital assets on multiple blockchains, presented as an investment “market place”. EP will also include access to tokenized real assets, such as precious metals and hard assets, broadening the investment options beyond blockchain-native utility tokens.
Despite Enzyme’s limitations regarding addressable market due to lack of key management solutions enabling sophisticated investors to use their platform, they have demonstrated; 1. Inventors demand easy to use investment platforms to derive a yield from their digital assets, and 2. Investors are willing to pay fees to utilise such services.
Enzyme has been extremely successful in attracting retail investors to their platform and have over $90 million in assets under management. In recognition of this AUM and future growth potential, the market has ascribed a market capitalisation of over $126mm to $MLN (the protocol governance token), based on a current token price of $69.41 (fully diluted value, as of 27/07/2021).
In comparison, EP core technology is already built and the Defi dashboard will launch in 3Q2021 and is equipped with functionality to address a much wider client base. The fully diluted, post token burn market capitalization of $UDO (the utility token used for governance and services payment) is currently $7.36mm based on token price of $0.08 (as of 27/07/2021).
The Unido leadership team view Enzyme as an excellent example to show the commercial attractiveness of the asset management dashboard space in cryptocurrency. $MLN trades at a 17x premium to $UDO (as of 27/07/2021), which would appear to be the result of Enzyme being in the market for several years, opposed to EP entering now.
The Unido leadership team are very excited by $MLNs market appeal, given the EP product can compete directly with Enzyme for the retail investor segment, but also can win enterprise and asset manager business, which represents significantly greater AUM possibilities.