The decentralized financing protocol Yearn Finance has announced a partnership with Pickle Finance to strengthen incentives for productive farming and to compensate victims of the recent Pickle exploit that caused the loss of nearly $ 20 million in Dai.
According to an announcement by Yearn founder Andre Cronje, the move will reduce duplication of work, increase specialization and leverage shared experience. The Pickle Finance safes or “Pickle Jars” are cloned versions of the v1 and Yearn safes, so the code is similar.
Pickle Finance encourages farmers to sell stablecoins that trade above their parity and buy those that are belowto align them closely with the dollar on which they are based.
Cronje said that The first step would be to merge the Pickle Jars and the v2 Vaults of Yearn and join the entire banned value or TVL of both protocols. He stated that further integration was planned.
1 / We’re excited to announce that Yearn has built a symbiotic relationship with @ Picklefinance.
For more information, see the Medium Governance posts below. https://t.co/xR8HYp4V58https://t.co/WMG6l2GLdw
– yearn.finance (@iearnfinance) November 24, 2020
1 / We’re excited to announce that Yearn has built a symbiotic relationship with @picklefinance. For more information, see the articles on Medium and Governance: https://t.co/xR8HYp4V58https://t.co/WMG6l2GLdw
The ultimate goal is Increase farmers’ profits with pickle strategies and earn higher performance fees under Yearn’s new fee structure. Yearn Finance, which recently formalized an operating budget, plans to recruit Pickles developers and strategy makers to devise new strategies and fee structures for new safes.
Pickle will introduce reward meters and tokens will be distributed to those who have used Yearns vault tokens. These tokens can now be time-locked as a security and are known as DILL. They can also be used to participate in Pickle’s governance and increase the rewards received from the Yearn Vault gauges.
Some in the community asked if there should be a government vote on the decision, but Yearn’s Tracheopteryx team member explained that this would not be necessary.
I announce that The creation of new Yearn safes, such as B. the newly merged Pickle Jars, is completely without permission, so no voting is required. Furthermore, The new meters will give out pickle tokens, not Yearns, and the rewards are in DILL, not YFI.
Pickle Finance was recently hacked in a Dai Vault flash credit exploit that resulted in a loss of nearly $ 20 million. Its original PICKLE token collapsed 50% from $ 23 to $ 11 on November 21. After the news of the merger with Yearn, the price soared to nearly $ 30 but has returned to around $ 16 at press time.
A new token called CORNICHON will be created to track the casualties from this attack. The tokens are minted against a snapshot of the balance at the time of the attack and is distributed proportionally to the victimsadded the ad.
Additionally, a request was recently filed with Cover, DeFi’s insurance protocol, to offer up to $ 340,000 in compensation if approved by a majority.
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