The merger of Yearn and Cream is mainly reflected in the launch of Cream v2, and the merger with Pickle is reflected in the launch of new tokens, the merger of Pickle Jars and Yearn Vault, and governance. According to Delphi Digital’s analysis, in the short to medium term, both YFI and PICKLE holders can benefit from the merger.
Written by: Karen
Yearn.finance founder Andre Cronje recently announced successively the merger plans of Yearn, Pickle and Cream, and Andre Cronje’s “carrying effect” has also appeared one after another. After the release of the two merger plans, the PICKLE and CREAM tokens are both in just 24 hours Doubled within hours.
Behind such a fierce market response, what are the similarities and differences between the merger of Year, Cream and Pickle? How will the merger affect all parties and their token holders? This article will take you to understand this new gameplay in the DeFi world.
What are the similarities and differences between Yearn, Pickle and Cream?
The merger of Yearn and Cream is mainly reflected in the launch of Cream v2, and the merger with Pickle is reflected in the launch of new tokens, the merger of Pickle Jars and Yearn Vault, and governance.
Same point
For Yearn vault depositors, they can obtain convenience or benefits from the merger relationship with these two projects. Among them, Yearn vault depositors can get additional Pickle rewards by transferring their storage shares to Pickle Gauge, and get additional governance token DILL rewards by locking Picke. In the merger relationship with Cream, Yearn vault depositors can use their share tokens as collateral for Cream, and the vault strategy can also obtain leverage through Cream.
The total locked amount of Yearn and the merging party will be combined or increased. The merger of Yearn Vault and Pickle Jars will be able to further merge the total lock-up volume of Pickle and Year, and with the merger of Cream and Year, users can increase the rate of return through leverage. In addition, the share tokens of Yearn vault depositors can be used as collateral for Cream , So the lock amount is also expected to increase.
Both Picke and Cream multi-signature keys will adopt a rotation mechanism to facilitate testing and deployment.
difference
According to the currently disclosed merger details, as far as the depth of the merger is concerned, the merger between Year and Cream is limited to the Cream v2 version, while the merger with Pickle includes the issuance of two new tokens, governance, merger of Pickle Jars and Yearn Vault, and the introduction of Gauge Rewards etc.
In terms of governance and new tokens, Pickle will launch two new tokens through the merger with Year, one is the governance token DILL, and the other is the token CORNICHON, which compensates for the loss of Pickle Jar attacks. In addition, additional Pickle rewards will be awarded to Yearn vault depositors who transfer their storage shares to Pickle Gauge. Cream will continue to use the original CREAM token, and the supply, release, and governance processes will remain unchanged.
In summary, the scope of the merger of Year and Cream is relatively limited, but for Yearn vault depositors and Pickle and Cream and their token holders, they can all benefit from it.
How will the merger with Year affect all parties and their token holders?
According to research and consulting organization Delphi Digital analysis , in the short term, YFI and PICKLE holders can benefit from the merger.
Specifically, Year will increase performance fees from 5% to 20% and management fees to 2% in yVault v2. Therefore, when Year’s total lock-up volume increases, the fees it earns will also increase. At the same time, the Gauge reward mechanism will bring more capital inflow to Year. Investors can lock their funds in vaults such as USDC and USDT, and then pledge vault tokens in the Gauge to receive PICKLE token rewards. The increase in Yearn vault’s annualized income will attract more capital inflows, which will further increase Yearn’s expenses.
On the other hand, Yearn converted PICKLE into its inflation token , and Yearn had previously lacked this “ability” just because the market generally agreed to stop YFI issuance.
In addition, Pickle can not only collect fees from the Pickle Jar before the merger, but also enjoy the bonus of Year’s asset scale, and can earn fees through the yToken pledged in the Gauge. Delphi Digital said that this means that PICKLE will also become a supplement to Year and be able to obtain value from Gauge fees such as performance fees, withdrawal fees, and strategy fees developed by Pickle. In addition, the Yearn and Pickle teams will bring more utility to the PICKLE and DILL tokens.
Regarding the merger with Cream, although the scope of the merger is relatively small, Yearn vault depositors can use their tokens as collateral for Cream, and Cream users can also use the merger relationship to allow users to increase the rate of return through leverage.
Yearn&Cream: Cream v2 focusing on core lending and leveraged products
The merger of Yearn and Cream is mainly reflected in the Cream v2 version. Cream v2 will focus on core lending and leveraged products , allowing users to increase the yield through leverage. It can be seen as a test of the future Yearn and Cream cooperative loan products. The specific cooperation points are as follows:
In terms of cooperation between the two, Year will merge development resources with Cream, and will also launch a new zero-collateral agreement credit solution. After the merger, it will also help increase the total locked assets of Year and Cream.
For Yearn vault depositors, their share tokens can be used as collateral for Cream, and vault strategies can also be leveraged through Cream.
Cream will mainly focus on lending products and will become the launch version of Stable Credit.
The core feature of Cream v2 is that it focuses on lending products and the collateralized assets are selected “blue chip tokens”. In Cream v2, the current CREAM token will also be used, the supply and release will also remain unchanged, and the governance process will be roughly the same as the existing governance process. In addition, Cream’s multi-signature keys will have a new rotation mechanism to facilitate rapid iteration, testing, and deployment.
Yearn&Pickle: Merging Pickle Jars and Yearn Vault, introducing Gauge rewards, and launching new tokens
The merger of Yearn and Pickle was announced after Pickle was attacked and lost nearly 20 million DAI. The merger between the two projects mainly includes merging Pickle Jars and Yearn v2 Vault, introducing a Gauge reward mechanism (Reward Gauge, liquidity weight reward mechanism), launching DILL governance tokens and issuing new tokens to compensate for the loss of Pickle Jar attacks CORNICHON .
Pickle Jars will adopt the v2 design and will also be deployed as Yean vault, after which a detailed migration plan will be released.
Pickle will still release tokens, but tokens will be distributed through Gauge rewards. Yearn vault depositors can get additional Pickle rewards by transferring vault storage shares to Pickle Gauge. Pickle developers can get a 10% performance fee when creating a strategy.
In the design and distribution mechanism of DILL governance tokens, Pickle governance participants can obtain voting rights and DILL by locking Pickle on the set expiration date. The longer Pickle is locked, the DILL tokens received will be The more, the shortest lock time is one week and the longest lock time is four years. In addition, Yearn vault depositors can get additional DILL rewards by locking Pickle, up to 2.5 times. The more DILL they hold, the more rewards they will receive. Gauge deposit and withdrawal fees, performance fees and agreement fees belong to the holder of DILL.
At the same time, DILL holders can participate in Pickle governance and can increase their rewards from Yearn vault gauge. Pickle Governance will determine the gauge weight, cost allocation and other protocol parameters.
In addition, the new token CORNICHON, which compensates for the loss of the Pickle Jar attack, will be distributed to the victims in proportion.
The merger of Yearn and Pickle means that Pickle will gradually be integrated into the Yearn ecosystem, and the total lock-up value between the two will also be combined.
In addition, similar to the merger with Cream, Pickle’s multi-signature key will also adopt a rotation mechanism to promote testing and deployment.
Some community users questioned the decentralization of DeFi
At the same time, some community users expressed their concerns about the decentralization of DeFi, accusing Yearn of not informing users or voting before announcing the merger.
In this regard, the Yearn operations representative tweeted to explain that the creation of Yearn vault does not require a license and the code is also open source. The token released by Pickle through the introduction of Reward Gauge is PICKLE, not YFI. In addition, this is beneficial to both YFI and PICKLE token holders, and there is no reason to vote.
Undoubtedly, the merger of DeFi agreements can promote capital utilization efficiency, share technology and resources, and enhance specialization and flexibility. In the future, there may be more DeFi projects to merge, but at the same time, the market monopoly caused by mergers is also worthy of our thinking.
