January 25, 2021

Cryptheory

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

Yearn Finance Consumes Pickle Without Governance Vote

2 min read

Decentralized finance platform Yearn has absorbed the embattled Pickle Finance protocol.

The move follows a hack over the weekend that resulted in the loss of $20 million in stablecoins, however, the community had no say in the decision.

Yearn Finance has partnered, or rather absorbed, Pickle Finance in an effort to increase rewards for stakers and reimburse some of the victims of the flash loan attack that occurred on November 21.

The announcement by Yearn founder Andre Cronje stated that this has been done to reduce duplicate work, and increase specialization. Pickle was cloned from Yearn Finance, which launched a ‘backscratcher’ vault earlier this month, as its Jars are based on the v1 vaults of the former protocol.

Some argue that the takeover makes sense considering that they share the same code. Yearn will reportedly be able to introduce new strategies for the stablecoin yield farming that Pickle offers.

What, No Governance Vote?

Usually, with major decisions for DeFi protocols, there is a governance vote, however, this is also often manipulated by whales bringing the entire premise into question.

A Yearn team member, going by the handle ‘tracheopteryx.eth’ [@tracheopteryx], explained why there was no need for a governance vote.

The partnership will include the merger of Yearn’s v2 vaults and Pickle Jars in addition to their total value locked (TVL). Since creating a new vault is permissionless, there is apparently no need to vote on it.

Additionally, the rewards will be in the form of Pickle tokens and something called DILL, which can be locked up over time for greater returns. They can also be used for governance of those vaults or ‘Gauges’ as they’ll be called. This doesn’t affect YFI holders so, again, no vote is necessary.

The Pickle team will migrate to Yearn and a new token called CORNICHON will launch to track losses from the recent Evil Jar exploit. These tokens will be distributed proportionally to victims of the attack.

PICKLE and YFI Token Reaction

PICKLE tokens, which dumped over 50% on the day of the hack, surged to almost $30 following the announcement. They have since rapidly retreated. At the time of writing, PICKLE was trading at $16, up 25% on the day but still down 30% from before the weekend’s exploit.

Despite the hype, PICKLE is still trading down some 78% from its all-time high in mid-September.

The Yearn Finance native token is also on the back foot, dropping 9% on the day to just below $24,000. It has made some solid gains this month, doubling in price, but is still down 45% from its giddy peak of $44,000 in mid-September.  

The post Yearn Finance Consumes Pickle Without Governance Vote appeared first on BeInCrypto.

Source

Leave a Reply

Your email address will not be published.