What is Melon (MLN)?

Melon (MLN) is an Ethereum-based protocol for decentralized on-chain asset management. It is a protocol for people or entities to manage their assets and others’ properties in a secure and customizable environment. Melon empowers anyone to set up, manage, and invest in custom chain investment vehicles.

Melon aims to decentralize traditional wealth management, an area formerly the domain of professional financial advisers and corporations. The idea is that Melon cryptocurrency could lower entry barriers for asset management, opening up access to more global consumers.

Melon aims to create an alternative system. Using the project’s web portal, users can invest in funds and portfolios offered by other users, and other users can invest in their creations. The Melon protocol uses the MLN cryptocurrency to perform various operations on the platform.

Melon updates users about the status of the roadmap through its official website and blog.

How does Melon work?

The Melon protocol is a computational set of smart contracts executed by the Ethereum blockchain.

Due to this design, transaction fees are paid for in ether. These fees cover the cost of using Ethereum’s computing power and Melon’s software.

The protocol itself consists of two layers, the fund layer, and the infrastructure layer, and it comes with its own Javascript library that allows web browser support.

Fund layer

The Fund layer is where users launch and control the funds that other users can invest.

Each fund layer consists of two parts:

“The Hub” is considered the core of the fund class, as it provides all the necessary tools to set up a fund and keep track of the components that make up the fund.

“The Spokes” uses smart contracts to identify funds, created by each fund manager, and contribute specific services to the fund. Examples include Vault, a component used to store tokens on behalf of the fund, and shares, a component that tracks fund ownership.

The Infrastructure Layer

Infrastructure layers are controlled by Melon Council, Melon’s DAO.

Some examples of infrastructure contracts include:

The ‘adapter’ contract – a contract that associates certain content with price feeds for transactions.

The ‘engine’ contract – buys MLN for ETH to help pay for certain calculations.

The ‘price source’ contract – provides general information required for the actions in the fund.

Protocol Security

The security of the Melon protocol is of paramount importance to the Melon Council. Melonport has had a number of audits done by reputable auditors (Least Authority, Deja vu, Solidified, ChainSecurity). That being said, the Melon Council encourages anyone willing to use Melon with a substantial amount of AUM to conduct their own audit.

Additionally, they welcome and reward confidential reports from the community with our ongoing bug bounty program.

Melon Bug Bounty program

To test the security of their smart contracts and thus to discover possible vulnerabilities in their code, they invite and challenge everyone out there to find the security attack/vulnerability vectors in the Melon protocol. The total reward is 247,989 DAI available to pay the bonus. Bonuses will be paid for all valid security holes found and disclosed to the Melon Council.

The Melon Council

The Melon Council is a DAO that manages the protocol and is responsible for future maintenance. All decisions made by the Melon Council can be referenced in real-time on the aragonOS interface of the Melon Council.

The Melon Council DAO activities are provided by the aragonOS. A custom Aragon DAO for the Melon Council has been deployed and can natively interact with the Melon protocol.

Mission

The Melon Council’s long-term duties are to:

  • Maintain network integrity
  • Maximize user adoption
  • Drive innovation and increase the attractiveness of the network

In fact, the Melon Council is responsible for the following:

  • Protocol upgrade
  • Resource allocation
  • Network parameters

Conclusion

Melon is a fully decentralized asset management protocol that allows anyone to set up, manage securely, and/or invest in a digital asset fund robustly and permissionless manner. It allows asset managers to create their own customizable investment vehicles on Ethereum in a matter of minutes and without the need for a back-office or a financial intermediary.

In short, Melon provides a platform for fund managers and investors to operate in a significantly less secure, transparent, efficient, and less expensive way. Ultimately, this will benefit end-users and investors alike.

You can check the MLN price here.

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