foreword
On December 1, the DeFi aggregator project yearn announced the merger with the Uniswap fork project Sushiswap. This is Yearns fifth merger after the merger with Pickle Finance, Cream Finance, Cover Protocol and Akropolis. As a new project rising in the DeFi boom in the third quarter, Yearn not only quickly accumulated a large amount of lockup value, but also successfully started a series of project mergers in the history of DeFi. But in fact, before the merger, the actions of Yearn founder Andre Cronje (AC) never stopped.
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On November 24, 2020, Yearn announced its merger with Pickle Finance. Since this merger is the first merger in the history of DeFi, and Yearn, Yearn founder AC and the food project itself have a high degree of community enthusiasm and discussion, the merger has attracted widespread attention after it was announced. However, Yearn’s merger target is not limited to Pickle. In the following week, Yearn announced five mergers in succession. The merger projects cover multiple fields in the DeFi ecosystem, including lending, trading, insurance, and income aggregation:
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Source: Andre Cronje Twitter
Among the 5 merged projects, 4 projects (Pickle Finance, Cream Finance, Cover Protocol, Sushiswap) are newly launched DeFi projects in 2020, of which 3 projects (Pickle Finance, Cream Finance, Sushiswap) originated from forks, And 2 projects (Pickle Finance, Ankropolis) were hacked shortly before the merger.
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Combined project characteristics statistics; source: TokenInsight
The service types of the five merged projects are different, but the mergers have the following commonalities:
① In the 5 mergers, the development teams of both parties merged;
② The economic mechanism and issuance plan of the original token of the project have basically not changed;
③ Projects that have been attacked by hackers plan to issue new tokens with the support of Yearn to make up for the users lost in the attack and rebuild the reputation of the project;
④ Except for the insurance agreement Cover, the other four projects merged with Yearn TVL.
But at the same time, due to the different merger projects, there are also differences in the five mergers:
① Projects that have been attacked before and have a relatively small lockup value are more likely to be integrated into the Yearn ecosystem in terms of mergers. For example, after the merger, Akropolis became Yearns institutional service line. And the vaults of Pickle and Akropolis will be integrated into Yearns vault;
All in all, from the details of the 5 mergers, it can be seen that this series of actions by Yearn has a trend of ecological integration, providing new ideas for the enrichment and expansion of project products and services in the DeFi field, and the acquisition of human resources. Before these mergers in Yearn, the ecological integration in DeFi was more about the cooperation between projects or the launch of new projects covering new service types by leading projects.
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2. Experiments by Andre Cronje
The series of mergers of Yearn have aroused heated discussions in the community, but in fact, before the merger, other actions of the founder of Yearn AC have also received keen attention from the community. Since the revenue aggregator Yearn became popular and the token YFI achieved extremely high returns, Andre Cronje once caused the AC effect, and he himself has been making different attempts to improve the DeFi ecosystem and optimize services. These attempts can be mainly divided into the extension of the aggregator Yearn itself and the launch of new projects.
2.1 Extension of Yearn
In mid-July, when the token YFI was launched, Yearn included 6 other modules in addition to the core revenue aggregator. The income aggregator yearn.finance automatically transfers the funds of liquidity providers in the income pools of Aave, dYdX, and Compound, seeking to maximize benefits. Among the other 6 modules, ytrade.finance, yswap.exchange, and yleverage.finance provide trading services, among which ytrade and yleverage support leveraged trading of stablecoins; yswap is actually an AMM that allows unilateral asset liquidity. Other modules include yliquidate, which provides liquidation services, ypool, a decommissioned fund pool, and a credit entrustment lending agreement.
It can be seen that ACs idea is not just to do a single project from the beginning to the end. AC himself is very familiar with DeFi and the problems existing in it, and loves to make new attempts. A series of subsequent actions have also verified its role in the DeFi ecosystem Build on extensions.
① Insurance: yinsure.finance. Tokenized insurance, an exploration of the decentralized insurance mechanism. The Yearn team worked closely with the Cover Protocol team during the development of yinsure, which led to the subsequent merger with Cover Protocol;
② DAO financing: Delegated Funding DAO Vaults. Through the governance mechanism of YFI and yearn, it is a new practical attempt to the decentralized autonomous financing (DAICO) proposed by Ethereum founder Vitalik Buterin in 2018;
③ Stable currency credit agreement: StableCredit. A decentralized lending protocol that integrates stablecoins, lending, and AMM. Among them, the component element supporting unilateral asset risk exposure AMM is extended from yswap. StableCredit is essentially a new protocol, but because it is still under development and experimentation, it has not yet been officially launched.
④ Index: SytheticRebaseDollar. An index that tracks the dollar value of mortgage assets is more like an innovative idea, and the Yearn team has not yet figured out its future application.
In addition to the above attempts, the AC team also introduced some concepts that are specially shared with developers, such as liquidity tokens and liquidity governance to alleviate the problem of impermanence loss, but such concepts only seem to be shared with the community, especially developers Some ideas that emerged during the communication and development process, but the specific implementation details are not clear. Similarly, among the four attempts extended after the above introduction of Yearn’s popularity, yinsure is a relatively mature one, and the other three have not made any important progress that has been officially disclosed.
Yearn and other project teams, such as Hegic, Aave, Compound, Chainlink, etc., have maintained close communication and cooperation, which is also the key to the subsequent merger. The merger is a practice method successfully found and a future implementation plan formulated after a steady stream of innovative ideas and development attempts in the previous months.
2.2 New items
While constantly spreading new ideas around Yearn, the AC team has also developed new projects. The launch of these new projects is not lacking in cooperation with other teams.
① Keep3r: Infrastructure projects, peer-to-peer smart contract work execution coordination system. The significance of the launch of this project is to aim at the cumbersome work execution process of smart contracts (such as obtaining the income of liquidity mining), and help users who need to perform work to find executors (Keepers). The executors will charge KPR tokens as salary. Keep3r can be used as an oracle. The UniswapV2Oracle module is an on-chain oracle for Uniswap V2 trading pairs, but it is aimed at providing prices for trading pairs that other more mature oracles usually do not support. In addition, Keep3r has partnered with Chainlink.
② Deriswap: An agreement that integrates AMM, options and lending, and is committed to improving capital utilization.
③ Eminence: The card game project was attacked by hackers before it was completed, and 15 million US dollars of funds were stolen from the liquidity provider.
④ Zlot: Decentralized option mortgage warehouse, a project launched in cooperation with Hegic. Hegic allocates mortgage positions to users with 888k HEGIC, and distributes the income through the mortgage positions; Zlot provides channels for users with less than 888k HEGIC to obtain the benefits of the mortgage positions.
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summary:
summary:
To prevent illegal fund-raising activities under the banner of blockchain and virtual currency by various financial platforms, TokenInsight will strictly abide by national laws and regulatory regulations, and resolutely resist the use of blockchain for illegal fund-raising, network pyramid schemes, 1C0 and other Variations, dissemination of bad information and other illegal acts.
Andre Cronje Medium：https://andrecronje.medium.com/
Andre Cronje Twitter：https://twitter.com/andrecronjetech
risk warning
To prevent illegal fund-raising activities under the banner of blockchain and virtual currency by various financial platforms, TokenInsight will strictly abide by national laws and regulatory regulations, and resolutely resist the use of blockchain for illegal fund-raising, network pyramid schemes, 1C0 and other Variations, dissemination of bad information and other illegal acts.
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