19.12.2020 | 08:00
DeFi Yearn Finance Protocol joined forces with Pickle Finance, resulting in a price increase for Pickle
Yearn Finance founder Andre Cronje confirmed plans to bring Pickle Finance. The partnership will help increase incentives for yield farming and reimburse DeFi users who fell victim to Pickle Finance’s Saturday operation.
The popular DeFi protocol suffered a $19.7 million loss in the DAI, in an exploit that was described as a complex code execution. The system was manipulated using several loopholes, including the Jar conversion logic and Jar swap, resulting in an exploit of almost half its value.
According to Messari data, the price of the Pickle token (PICKLE) dropped 50.12% to $10.17 with news of the exploit. After the merger news, the price of the PICKLE went up to $26.5, but has since dropped to $16.98 at the time of writing.
Cronje explained that the partnership aims to promote specialisation and reduce duplication of work.
Pickle Finance’s vaults, known as Pickle Jars, borrow heavily from Yearn’s v1 yVaults and are more like duplicates of the latter. Cronje said that the first step would be to consolidate the vaults as they have similar codes. The next step would be to unify the total value of the blocked protocols. He added that more additions will follow.
“.. We are pleased to announce that Yearn has formed a symbiotic relationship with @picklefinance,“ Yearn Finance posted on Twitter.
Yearn Finance will seek to integrate Pickle’s strategy creators and developers to develop new strategies and fee structures for the new vaults.
The DeFi community’s reaction to the partnership so far has been mixed. One faction of the community has expressed concern by suggesting that there should be a governance vote on the merger decision. The question was answered by a Yearn team member who said that there was no need for a governance vote because the construction of new Yearn coffers was not allowed.
Regarding the Pickle exploit, a token called CORNICHON will be built to analyze and determine the losses incurred. The partnership announcement explains that the tokens will be created according to the balances at the time of exploitation. They will then be distributed fairly among the victims.