First DeFi merger
Alt coins

First DeFi merger? Yearn.Finance and Pickle Finance join forces

The two DeFi protocols aim to ‘reduce duplicate work, increase specialization, and to leverage shared expertise.’ Of course, there was that $20 million Pickle hack

Decentralized finance protocols Yearn.Finance and Pickle Finance have announced what amounts to a merger.

According to a Nov. 24 announcement, Yearn.Finance and Pickle Finance are putting into place a collaboration that may very well mark the first such agreement of the DeFi space.

The purpose of the collaboration is to “reduce duplicate work, increase specialization, and to leverage shared expertise” the two projects said. As part of the integration, deposits made into Yearn’s v2 Vaults and Pickle’s Jars will merge, meaning that users making deposits will earn rewards from both the protocols.

Furthermore, the announcement reads that “this is an initial minimal release, with further integration planned.” The merger will become effective when the second version of the Yearn.Finance protocol—which is currently under development—comes online.

The announcement comes just days after the Nov. 21 Pickle Finance hack, which saw hackers drain $19.7 million in decentralized stablecoin DAI from the platform. Alongside the merger, the project also announced the creation of a new CORNICHON token, which tracks the losses stemming from the attack. It is yet unclear what will provide value to those tokens, but they appear to be part of a compensation scheme:

“Tokens will be minted against a snapshot of balances at the time of the attack, and distributed to victims proportionally. Further measures may then be adopted by Pickle Governance through its regular decision process.”

DeFi sees rapid development amid ongoing enthusiasm

The DeFi space may be this year’s biggest trend in the cryptocurrency industry, with companies involved in the space investing heavily to participate.

As Modern Consensus reported earlier this month, Liechtenstein-based cryptocurrency exchange Bittrex announced the listing of eight DeFi tokens in a single day and added that they will be traded with no fees. This announcement closely resembled another made by the firm’s competitor OKEx, which also listed eight DeFi tokens in a single day at the end of August.

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Adrian is a newswriter based out of Pisa, Italy. He's passionate about cryptocurrency, digital rights, IT, tech and futurology and likes to think about the future in a positive way.