Enso & DeFi 2.0, iykyk
DeFi is entering an exciting growth and innovation phase — yet again. The industry has arrived at a point where liquidity mining cycles have shortened from months to only a couple of days.
This mercenary liquidity has left many projects and their communities out to dry after the Total Value Locked (TVL) has moved on and much of the token allocation has been mined and dumped. A new paradigm was needed to create a more positive relationship between the protocol and capital providers.
Why DeFi 2.0 isn’t just a buzzword
DeFi 2.0 started emerging as an answer to the harmful effects of mercenary liquidity and its harmful effects on the die-hard protocol users. This resulted in zombie protocols with no liquidity to create value for its users. One of the problems was the prominence placed on TVL, which was often under the control of only a few protocol users.
In response to this problem, protocols like OlympusDAO, Fei, and Alchemix emerged. They offered a new way of aligning interests between the protocol and liquidity providers. This gave birth to Protocol Controlled Value (PCV), where the protocol owns the majority of its liquidity and can use it to ensure the longevity of the project, while creating value for its community at the same time.
The LARP experiment that started with OlympusDAO has changed the relationship between the liquidity providers and the protocol, giving birth to DeFi 2.0, which has capital efficiency at its core.
Enso is built for DeFi 2.0
The Enso protocol is built for DeFi 2.0. It enables protocol users, Strategists, DAOs, and Syndicates to maximise the capabilities of DeFi 2.0 to create new and more efficient ways for capital deployment.
For example, a DAO can deploy a strategy on Enso protocol to optimize its treasury reserves. Funds collected from the investors in the strategy can be used to provide the DAO treasury with the most needed bonds at any time, while any unused funds can be deployed to accrue additional yield. As a result, the Enso strategy accumulates the DAO governance tokens. In short, a vault for the DAO can be seamlessly integrated on Enso protocol.
Enso protocol’s core features create a simple way for effective capital management and allocation:
- Anyone can create a strategy through Enso protocol in a few simple steps.
- Unlimited composability of creating strategies of strategies.
- Complete customization where tokens can be added or removed from the strategy at any time.
- Fully-customizable yield farming of the tokens in your strategy on DeFi platforms
- No whitelist — users can add any ERC-20 tokens to a strategy.
Enso protocol supports DAOs and other protocols in their efforts to manage and deploy their liquidity in the most efficient way possible that creates maximal benefit for the longevity of the DAO protocol and its user base.
What is next for Enso?
We’re launching very soon! In the meantime, please ask questions in our Discord, and provide feedback!
Welcome to Enso Finance — Social Trading Redefined.
This article is neither an offer of nor marketing material for financial instruments, financial services or the native ENSO token. Enso Finance is not regulated under any financial market laws in any jurisdiction. It is only the developer and provider of the ENSO protocol. Due to its decentralized nature, the ENSO protocol is neither controlled nor operated by Enso Finance. Strategies on ENSO protocol are created, deployed and managed by the users of ENSO protocol. Enso Finance is neither providing financial services nor offering financial instruments.
Any liability is excluded to the extent permitted by applicable law.