Yearn Finance Creator Andre Cronje Reveals New DeFi Project DeriSwap; Loans, Options, and Swaps
- Andre Cronje, the founder of the famous decentralized finance (DeFi) project Yearn Finance, has announced the launch of a new project.
Earlier today, Cronje shared a blog post confirming the launch of DeriSwap, a protocol that consolidates different parts of DeFi.
How DeriSwap Works
DeriSwap combines multiple DeFi services such as swaps, options, futures, and loans. Cronje believes his new project could improve capital efficiency in DeFi and allow for more interactions between assets. Cronje explained in the announcement,
“DeriSwap allows for a consolidated, capital-efficient market for Trading, Options, Futures, and Loans, allowing LPs to keep their exposure and enjoy additional fees and rewards.”
Cronje offered scant details about the new platform and what it entails. However, he pointed out that the swap contract is a standard Uniswap x * y = k, which allows Liquidity Providers (LP) to swap two assets that make up a pair. For example, if LPs provide ETH-BTC as liquidity, traders can swap these assets for one another, allowing LPs to earn trading fees.
The protocol uses the Time Weighted Average Price (TWAP) oracle, with Cronje confirming that it takes readings every 30 minutes. Such operation allows for real-time metric readings, which should improve the protocol's operational efficiency.
Cronje plans to release more details about the protocol after the audit. Since the launch (and exponential growth) of Yearn Finance and its native YFI token, he has been pretty passive, choosing to speak mostly through his work.
Last month, Cronje launched the Keep3r Network, much to the excitement of investors. The network functions as a decentralized marketplace for technical jobs. Along with its native token, KPK, Keep3r aims to provide crypto projects with access to the specialized labor and technology they need to run.
The project's documentation explained that it supports tasks that are as “simplistic as calling a transaction, or as complex as requiring extensive off-chain logic.” Employers can also pay contractors with KP3R tokens from the fees they earn by yield farming ETH and KRP on Uniswap.
Cronje's Midas Touch
Despite the lack of a formal launch or much fanfare, Keep3r immediately attracted buzz once it dropped.
A few opportunistic traders with their trading bots immediately injected funds into the platform and began trading KP3R on Uniswap, causing its price to rise from $1 to $2,000 even on thin volume.
However, Cronje redeployed the platform's contracts several times while conducting tests, causing the KRP price to drop to $100.
At press time, KP3R trades at $275.63, with a market cap of $51.5 million. This is monumental for an asset that is still in beta and is less than a month old.
It's unclear whether DeriSwap will have any tokens associated with it. However, if it does, then it won't be so surprising to see a post-launch surge.