Updating Trust Assumptions on Enzyme as we Approach v5 Launch

Enzyme is working towards releasing v5, in the first quarter of 2025. This version will have a number of new features with the objective of providing the most flexible asset management infrastructure for managers and builders.

Enzyme v5 aligns with the expansion of DeFi into a much broader universe of assets ranging from RWAs to niche and hybrid assets that require a variety of pricing methods that go beyond the consensus-driven on-chain pull oracles of services such as Chainlink and Redstone (who also facilitate data quality standards).

Custom Pricing Methods

We are seeing growing demand from our user base and prospective users to introduce custom methods of pricing assets to deposit in Enzyme vaults.

As such, we are bringing forward this particular feature to the current version of Enzyme, v4.

This means that the Enzyme technical committee will be able to add requested assets using non-standard pricing methods to the asset universe, making them available for all vault owners. These pricing methods may carry risk to particular vault models (e.g., liquidity conditions, moving averages, freshness).

Understanding Trust Assumptions

A byproduct of this flexibility is that vault owners will become trusted by default to make correct risk assessments of these asset pricings for their own vaults.

Inaccurate price feeds can lead to incorrect pricing at the vault level which in turn can lead to arbitraging the vault at the expense of other depositors.

These risks can be mitigated by adhering to the following:

• Updating our registry of assets in the documentation to include price feed sources so that asset managers can assess the risks more transparently and assess it for themselves.
• Adding to the vault our “disallowed assets list” policy configured with the committee-maintained list that tracks asset universe additions that use non-standard pricing. This gives depositors some assurances that the NAV will not suffer as a result of inaccurate pricing.

As always the team is available to support if you have any questions on these changes.

This new policy will be released on September 15th, 2024 and from that point, all users must be fully aware of these risks and with our terms and conditions found here. Information will be made available on which assets the Enzyme Technical Council intends to add to the asset universe.