The cryptoverse was badly hit recently when stablecoin TerraUSD lost its peg with the US dollar. This led to decline in even other cryptos, which are independent of the LUNA ecosystem.
One crypto, Enzyme Finance’s MLN token, had to convince enthusiasts that it is not related to Terra in any respect. Enzyme, a decentralized finance (DeFi) player with services like “vault strategy”, is not a high cap crypto like DOGE or SHIB. But MLN token has risen sharply of late. Let’s know more.
What is Enzyme Finance DeFi?
DeFi is said to be an emerging fintech service. Here, crypto holders can deposit their tokens to generate ‘passive income’. Enzyme Finance claims to be an aggregator of protocols that provide such borrowing and lending services to crypto users. These include AAVE, Compound, and Uniswap.
Also read: What could have caused crypto crash and what can be its effects?
Enzyme states it can be used by decentralized autonomous organizations (DAOs) to manage treasury. Vault strategy is a facility, which Enzyme says connects a vault manager with depositors. Anyone can be a vault creator, it is claimed, and depositors can select a vault strategy that appears to be the best.
Enzyme also mentions yield farming, asset swapping, and derivatives on its website.
What is MLN token?
MLN is native to Enzyme Finance protocol. According to CoinMarketCap, over two million MLN coins were in circulation at the time of writing.
MLN token trades on such exchanges as Binance, KuCoin, and OKX. The project has announced that it has no links to Terra Luna ecosystem.
Also read: Will LUNA recover? Factors that could shape its recovery
MLN token price
The market cap of MLN token was nearly US$70 million as of writing. This made it one of the top 500 assets on the list compiled by CoinMarketCap. MLN price was nearly US$34, which was up almost 25 per cent in the last 24 hours. MLN token’s trading volume was up over 3,000 per cent during this period.
That said, MLN token is trading below its price on January 1, 2022. So far this year, it has continually lost value.
Data provided by CoinMarketCap.com
Bottom line
The loss of value of TerraUSD stablecoin seems to have had a very bad impact on the wider cryptoverse. Recently, MLN token’s Enzyme Finance protocol tweeted that it is not linked to Terra. MLN token has lost in 2022, but over the past 24 hours, MLN’s trade volume and price have both seen an uptick. The protocol claims DeFi aggregation and vault strategy services. MLN is among top 500 assets.
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