On December 1, Yearn founder Andre Cronje (hereinafter referred to as AC) announced the completion of the merger with SushiSwap. This is Yearns fifth merger in 8 days. Prior to this, Yearn has completed the merger with Pickle, Cream, Cover, and Akropolis.
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Merger source Pickle: an act of kindness
Yearns merger with Pickle can be understood as an act of goodwill.
At that time, Pickle had just encountered a severe flash loan attack. Hackers stole nearly 20 million USD in DAI by forging Pickle jars, and the price of PICKLE tokens plummeted by 62% in a short period of time. Pickle enters Darkest Hour, and Yearn takes advantage of the timing to pull Pickle.
Three days after Pickle was attacked, AC posted an article on Medium announcing that Pickle and Yearn had completed their merger.
There are 7 specific measures in the merger plan, which will benefit users of Pickle and Yearn.
The most notable of these are the reward gauge and two new tokens: DILL and CORN.
According to Blue Fox Notes: Users can obtain PICKLE tokens by staking YearnVault tokens in Pickle Gauges, and DILL governance tokens can be obtained by locking PICKLE tokens.
Holding DILL governance tokens can increase Pickle token rewards from Yearn Vault gauges by up to 2.5 times. Holding DILL tokens can participate in governance and determine Gauge weight, fee distribution and other protocol parameters.
The CORN tokens will be generated based on the balance snapshot at the time of the attack, and distributed to users who suffered losses in proportion. The CORN token was officially launched last Sunday, and Pickle users can obtain DAI by burning CORN.
The merger between Pickle and Yearn has a lot of benefits for Pickle. Officially joining the Yearn ecosystem can benefit from the ecological development itself. Pickle will be rewarded when Yearn depositors use the reward gauge.
Yearn can also benefit from this merger. Yearn will exchange experience with the Pickle development team to promote the improvement of community governance. After all, when the project was founded, its community governance mechanism was publicly praised by Vitalik.
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Merger Tide: Recruiting Troops and Enriching the Ecology
Many people did not expect that the merger of Yearn and Pickle opened the prelude to the merger tide.
November 26Cream
On November 26, AC posted on Medium again, announcing the completion of the merger with Cream. Cream is a mortgage lending platform forked from Compound, which supports some DeFi platform tokens as collateral.
In this merger, the Cream v2 version was born. The v2 version will be dedicated to core lending and leverage products. In the Cream v2 version, Yearn and Cream cooperative lending products will be launched.
After the cooperation between Yearn and Cream, the assets in YearnVault can be used as collateral for Cream. After joining the Yearn ecosystem, Cream will devote itself to the research and development of lending related products.
In addition, AC gave an important signal in the article: the decentralized lending protocol StableCredit will be released on the Creamv2 platform. The project will combine decentralized lending platforms (such as Compound), AMMs (such as Uniswap), and tokenized debt (such as DAI).
Through these descriptions, Yearn’s choice to merge with Cream is undoubtedly due to the advantages of the Cream team in mortgage lending. Cream joining the Yearn ecosystem will bring Yearn experience in lending product development. The two will also jointly explore the launch of a zero-mortgage agreement credit solution. If the solution can be achieved, it will be an important breakthrough in DeFi lending.
November 28Cover
After having a reliable cooperative team in the lending field, Yearn has set its sights on the DeFi insurance field.
Yearn has been working in the field of DeFi insurance for a long time. Yinsure can be regarded as a star product in the Yearn ecosystem. The most unique innovation of Yinsure is the NFT of insurance policies. Users can buy and sell Yinsure insurance policies on the NFT trading platform.
This time, Cover, the merger target selected by Yearn, is deeply involved in the DeFi insurance field and has lofty ideals, but the teams development has not been smooth. In less than two months, the tokens were changed twice, from SAFE to SAFE2, and now COVER.
AC mentioned that Yearn team developers and Cover developers have a long-term cooperative relationship, and this merger is logical for both parties. Cover will provide security protection for the Yearn product line and the entire DeFi field. Yearn can focus on Vault construction and provide users with low-risk products.
The most noteworthy thing after the merger of the two is the launch of Cover v1.1. Coverv1.1 will open insurance services to all projects in the DeFi field, allowing other DeFi protocols to create their own insurance ecology.
November 30Akropolis
After completing the merger with Cover, AC did not stop merging. Also after two days, on November 28, AC once again posted a document through Medium, announcing the completion of the merger with Akropolis, the first DeFi project in the Polkadot ecosystem.
Akropolis aims to build a blockchain-based financial services platform that allows customers to quickly establish informal autonomous financial organizations (AFOs), such as digital cooperatives, industry associations, and mutual aid organizations.
According to AC, Yearn values Akropolis ability to provide customers with front-end financial services. He said: Akropolis will provide front-end institutional services for Yearns products, provide customized access services for customer networks, and tailor investment strategies for customers.
Unlike the previously merged projects, Akropolis will not only cooperate with Yearn, but will also cooperate with Pickle and Cream. There are three main points of cooperation mentioned.
1. Akropolis has access to Pickle and Cream products and is able to integrate DCA solutions with these projects.
2. Akropolisvault will merge with Yearn v2 vault, obtain PICKLE tokens through PickleGauge, and conduct leveraged speculation through the Creamv2 lending agreement.
3. Akropolis integrates the product series of Yearn and Akropolis, and will launch new institutional applications. New institutional applications will integrate Cream v2, bringing additional revenue streams to the Akropolis protocol.
December 1SushiSwap
Just one day after announcing the merger with Akropolis, AC announced the big news on Medium: the merger with SushiSwap was completed. Once the news was announced, it caused a sensation in the DeFi field. This is the merger between two top projects in the DeFi field today.
AC eloquently listed 21 project development plans after the merger. There are 3 signals revealed in the 21 plans.
1. Yearn and SushiSwap will achieve deep integration, and users on both sides can participate in each others community governance.
2. The two parties will have in-depth cooperation in project research and development. The two parties will jointly promote the birth of Deriswap, and thereafter will jointly develop a secret project. AC will also integrate its traffic project Keep3r into Sushibar v2.
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Yearn Empire is really coming?
5 projects were merged in 8 days, and the intention of AC can be seen in the merger of each project. Learn the community governance mechanism from Pickle, use Cream to strengthen the technical strength in the lending field, use Cover to provide products with better insurance services, use Akropolis to provide customers with high-quality front-end financial services, and launch a new product DeriSwap with the assistance of SushiSwap.
For the Yearn ecology, the project merger focuses on professional improvement. One of the words that AC often mentions in these merger announcements is focus. A professional team does professional things. Although the Yearn team has its own involvement in multiple DeFi tracks, the Yearn team lacks skills and cannot work on multiple DeFi tracks at the same time. innovation in this field.
There are two main benefits for other teams to join the Yearn ecosystem and focus on their own fields.
First, Yearn developers will focus on what they do best and improve the quality of core products.
Second, Yearn ecology has improved its professional capabilities in multiple tracks, and multi-team collaboration has improved work efficiency. From working alone to multi-party cooperation, it is hard to imagine what phenomenon-level applications will appear in the Yearn ecosystem in the future.
AC expressed his excitement about the merger of projects, which he believes is a new trend in the DeFi field.
Teams merge, agreements leverage each other, visions are aligned, and success is shared by all team members. Its something new, and I dont think the model fits in the way were used to. DeFi allows us to cooperate and co-exist while maintaining our individuality.
The logic of AC merging projects is easy to understand. Based on the composability of DeFi projects, it is not unimaginable for AC to find building blocks from different tracks to complete the assembly in a short period of time. Between multiple projects merged within the Yearn ecosystem Compatibility is also possible.
In the short term, whether it is beneficial to the Yearn ecosystem or the entire DeFi ecosystem, multi-party collaboration will solve the problems existing in the operation of a single project, and the proposed solution will be applied to the entire DeFi, and all projects can benefit from it.
But in the long run, there are uncertainties in both the Yearn ecology and the DeFi field.
In the future, Yearn is bound to continue to merge other DeFi projects, involving many fields, coupled with the ambitious goals of AC, the structure of Yearn, a Lego building block work, will become more and more complex.
When the number of teams in the ecology reaches a certain level, once there is a problem with the operation of one or several teams, this Lego building block is not easy to dismantle. The related projects are interlocking, which is easy to cause a chain reaction.
Judging from the merged plan, the purpose of the merger is relatively strong, and the merged plan is related to the new Yearn project. From the merger plan given by AC, it is not difficult to see that Yearn has a higher proportion of profits from it. Whether AC will continue to ask these teams to assist Yearn in launching new projects after the planned projects are launched is unknown.
From the perspective of DeFi development, the Yearn ecosystem is rising rapidly, and the risk of monopoly is gradually increasing. Cooperation between DeFi projects is common, but large-scale mergers are the first time. AC calls it a new model, and if AC continues to step up its pace of consolidation, people may be about to see a DeFi carrier.
When there is a monopoly tendency in the DeFi field, and most of the liquidity and projects are concentrated in the top DeFi projects, the arms race of the top projects will change the rules of the game in the DeFi field, and the DeFi ecosystem will become more fragile. Once there is a problem with a monopoly-level project, it will cause a huge shock to the DeFi ecosystem.
Reference article:
Reference article:
1. Merger of Pickle and YFI by Blue Fox Notes
2. 10,000 times YFI in 43 days: its core business tells you how to play in the second half of DeFi by Vernacular Blockchain
