Yearn Finance announces another “merger” with the Cream loan protocol

Two days after Yearn Finance (YFI) and Pickle Finance partnered on DeFi’s first effective merger, Yearn founder Andre Cronje released details of another upcoming integration with Cream, a credit protocol similar to Compound and Aave. .

The blog post posted on Thursday describes how the two protocols will work together in the release of Cream V2. As part of the association lThe teams will pool development resources and introduce various mutual interactions between the two protocols.

Longing users can use their vault tokens – their participation in an income-farming strategy fund – as security for loans from Cream. In addition, farming strategies can access leverage on the platform, potentially increasing your performance.

Yearn Finance announces another “merger” with the Cream loan protocol
Yearn Finance announces another “merger” with the Cream loan protocol

The collaboration will continue with future launches, with Cream specializing in loan products. Stable Credit, a credit platform created by Yearn, is launched through Cream. As a future development, a zero guarantee protocol was also proposed, which would allow greater flexibility in lending.

Unlike Pickle Finance, however, Cream’s governance and token economy remain unchanged. The two protocols will remain largely separate, with synergies resembling a very close association rather than an outright fusion.

The community had raised concerns that it had not been consulted prior to the Pickle Finance merger, suggesting that the matter should have been put to a vote. A team member later clarified that technically it didn’t need to be approved as most of the integrations were on Pickle’s side.

Chris Blec, a DeFi researcher who often has a mixed view of events, believe What These decisions underscore that governance tokens offer less control than expected.

Speaking to Cointelegraph, he made it clear that these types of decisions would likely come under the umbrella of “Facilitating Business Development and Integration,” one of the decision-making powers YFI owners granted the core team in August.

Until now, The Yearn community has responded positively to Cream’s integration, but most have yet to process the announcement.

While the core team appears to have the right to approve partnerships and mergers, these actions may spark further discussion about the role of YFI token holders in the Yearn ecosystem.

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