DeFi Projects Yearn.Finance and Pickle Working Together, Two New Tokens to be Created
On Tuesday, Yearn.Finance creator Andre Cronje wrote about Pickle and Yearn developers coming together to work in Symbiosis. Cronje said,
“This is done to reduce duplicate work, increase specialization, and to leverage shared expertise.”
The plan is to merge Pickle Jars and Yearn’s V2 Vaults.
For this, Pickle will be integrated into Yearn’s ecosystem where Pickle Jars will be deployed as Yearn vaults using the forthcoming v2 design and “Pickle and Yearn TVL merges.”
The total value locked in Yearn.Finance is nearly $600 million, while Pickle only has $39 million in TVL, as per DeBank.
Pickle will be introducing rewards Gauges through which tokens will be distributed, and Yearn Vault depositors get to earn additional rewards by depositing vault shares in gauges.
The devs of Pickle Finance will continue to write strategies for which they will earn a 10% performance fee.
Pickle Governance participants will receive DILL in exchange for locking PICKLE for set maturity dates while Yearn vault depositors will earn additional rewards locking Pickle for DILL, up to 2.5x — “the more DILL they hold the greater the rewards” with a minimum locking period of 1 week and maximum 4 years.
The Gauge deposit, withdrawal, performance, and protocol fees will go to DILL holders. Pickle will also earn rewards from all Yearn depositors who use their rewards gauges.
In the announcement, Cronje further shared that a new token, CORNICHON will be distributed proportionally to the victims of the recent Evil Jar attack. This new token is created to track the losses of the attack against Pickle's DAI Jar.
Following the Pickle and Yearn collaboration news, the price of PICKLE surged past $20. As of writing, it is trading around $17, up from a roughly 66% crash resulting from the hack on the weekend. YFI, meanwhile, is trading at $23,700.
Some community members wondered why there wasn’t a government voting for this collaboration.
A Yearn Finance team member explained that there wasn’t anything for the yearn community to vote on because “creating a Yearn Vault is completely permissionless.” Given that the code is open, anyone can do this. He further pointed out that it is all primarily to do with the Pickle project.
“Yearn is for builders not bureaucrats,” concluded the Yearn.Finance team member.