Yearn, the DeFi protocol, has joined forces with Pickle to create new vaults and strategies.
The Yearn Finance decentralised funding protocol has announced a partnership with Pickle Finance to strengthen yield farming incentives and compensate the victims of Pickle’s recent exploitation that resulted in the loss of nearly $20 million in Dai.
According to an announcement by Yearn’s founder, Andre Cronje, the measure is designed to reduce duplication of work, increase specialization and leverage shared expertise. The Pickle Finance vaults, or „Pickle Jars“, are cloned versions of Yearn’s v1 and Vaults, so the code is similar.
Pickle Finance encourages farmers to sell stablecoins whose trading is above their parity and to buy those below it, to keep them closely aligned with the dollar on which they are based.
Cronje said the first step would be to merge the Pickle Jars and Yearn’s v2 Vaults and merge the total blocked value, or TVL, of both protocols. He said further integration is planned.
1/ We are pleased to announce that Yearn has formed a symbiotic relationship with @picklefinance. You can read more information in the articles in Medium and governanza: https://t.co/xR8HYp4V58https://t.co/WMG6l2GLdw
The ultimate goal is to reinforce the profits of yield farmers with Pickle strategies, earning higher yield fees under the new Yearn fee structure. Yearn Finance, which recently formalized an operating budget, plans to incorporate Pickle strategy developers and creators to design new strategies of Bitcoin Millionaire review and fee structures for the new vaults.
Pickle will introduce reward meters, and tokens will be distributed to those who have staked out Yearn’s vault tokens. These tokens can now be locked in time as a guarantee and will be called DILL, which can also be used to participate in Pickle’s governance and leverage the rewards received from the Yearn Vault meters.
Some in the community questioned whether there should have been a government vote on the decision, but Yearn team member „Tracheopteryx“ explained that this would not be necessary.
He stated that the creation of new Yearn Vaults, such as the recently merged Pickle Jars, are completely without permission, so there is no need for a vote. In addition, the new meters issue Pickle, not Yearn, tokens and the rewards are in DILL, not YFI.
Pickle Finance was recently hacked into a Dai vault flash loan exploit that resulted in the loss of nearly $20 million. His native token PICKLE collapsed by 50% on November 21 from 23 to 11 dollars. Following news of the merger with Yearn, it shot up to almost 30 dollars, but has since returned to around 16 dollars at the close of this edition.
A new token called CORNICHON will be created to track losses from this attack. The tokens will be stamped against a snapshot of the balance sheets at the time of the attack and distributed to the victims proportionally, the announcement added.
In addition, a claim was recently submitted to Cover, DeFi’s insurance protocol to offer up to $340,000 in compensation if approved by a majority.