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After the merger of Pickle and Year, it plans to issue a new CORNICHON token to track the losses suffered by Pickle DAI Jar in the attack.
Original title: “The Merger of Pickle and YFI”
Author: Blue Fox Notes
Pickle will be merged into Year. This is a development of Pickle after his attack last weekend. Such changes are estimated to be unimaginable a week ago. But now it becomes a reality.
In just a few days, the two projects reached a combined result, super fast. It is hard to imagine that if these are two start-up companies, they can reach a merger in less than a week. Compared with the merger of traditional company organizations, this is simply “light” speed, and it is also one of the new directions for the development of DeFi agreement projects. This is not the first DeFi protocol project attempt to merge. The previous CORE (cVault.finance) protocol merged its fork projects ENCORE, TENS and UNICORE. It can be expected that more and more various fork projects will merge in the future.
According to Andre Cronje, the merger of Pickle and YFI involves team collaboration, business combination, and the introduction of Reward Gauge, new tokens DILL and CORNICHON, etc. So, what changes do these new programs have for different participants?
The merger of Pickle and YFI will definitely have an impact on the current agreement participants and businesses, but what are worth paying attention to?
Combine Pickle and Year’s locked assets. Incorporate Pickle Jars into Yearn Vaults. Pickle Jars will adopt V2 design and will be deployed as Yean Vaults. A detailed migration plan will come out later.
The developers and policy creators of the Pickle protocol merge into Year, share development and security knowledge, and launch products and strategies with Year’s existing team;
Pickle developers and strategy creators can share 10% of the performance fee (in line with Year’s new fee allocation structure)
After Pickle was attacked, the Pickle team faced a reputation problem. Yearn merged with the Pickle team, and the Pickle team also had a greater opportunity to gain more revenue at a larger business level. This merger is an opportunity for the Pickle team.
Pickle token holders
Pickle Token Yesterday, after Andre Cronje announced the merger plan of YFI and Pickle, the price of Pickle Token instantly jumped from around US$12 to around US$29, and is currently back to around US$16. Judging from the overall market reaction this time, the market’s view on the merger of YFI and Pickle is positive, at least for the Pickle token market.
What will happen to Pickle tokens after the merger? One of the most important points is the introduction of reward gauge (similar to curve gauge) and the launch of DILL governance tokens.
In the current merger plan, Pickle’s additional issuance plan remains largely unchanged: Pickle tokens adopt a reward halving model for the first 5 weeks, reward 10 pickles per block in the first week, and 5 rewards per block in the second week. Pickle, and so on; from week 6 to week 52, Pickle’s token rewards will be reduced at a rate of 10% per week. After week 52, Pickle tokens will maintain a static distribution mechanism. Approximately 329 pickles will be added every week. With this additional issuance model, the annualized inflation rate cap is 1.29%. As of the writing of Blue Fox Notes, Pickle had a circulation of 1,134,561.726.
In order to get rewards for the newly added Pickle tokens, users can get it by pledged Yearn Vault tokens in Pickle Gauges. In order to increase the rewards of Pickle tokens, people can also achieve by adding DILL tokens.
So, what is DILL token? DILL is a newly issued governance token. DILL tokens are generated by locking Pickle tokens, which refer to the Curve token governance mechanism. In Cuve, its governance token CRV is not 1 coin 1 vote, but time weight is added. The longer the lock time, the higher the voting weight of the same token. Pickle tokens are similar. DILL is generated by locking Pickle. The longer the Pickle is locked, the more DILL you will receive. The minimum lock time is one week and the longest lock time is four years.
In addition, holders of DILL tokens have great rights:
Increase Pickle token rewards from Yearn Vault gauges by up to 2.5 times (similar to Curve mechanism). The more DILL you hold, the more Pickle token rewards you will receive;
DILL tokens participate in governance and determine Gauge weights, fee distribution and other protocol parameters;
Gauge storage, withdrawal, performance and agreement fees will be owned by DILLd token holders.
From the above token mechanism design, it can be seen that Pickle tokens have the underlying governance value first. It uses a mechanism similar to Curve to give the governance tokens time weight. For a simple understanding of DILL, you can think of it as Pickle tokens with time weighting. With the weight of time, DILL tokens can firstly bind token holders to the long-term development of the ecology, because holding DILL tokens allows users to get more rewards for new Pickle tokens, and can determine protocol parameters and Major matters such as cost allocation can also capture the cost of the agreement.
This is a better mechanism than simply holding tokens or locking tokens. It allows token holders to be bound to the long-term development of the agreement. This is a more reasonable distribution mechanism.
In addition, due to the low inflation rate of Pickle tokens and the underlying governance and value capture mechanism, the token mechanism designed after the merger is relatively friendly to Pickle token holders.
Yearn Vault Store
For Year Vault depositors, what are the advantages of merging Pickle? By storing Vault share tokens on Gauges, Year Vault depositors can earn additional Pickle token rewards.
Losers of the Pickle attack
After the merger of Pickle and Year, it plans to issue a new CORNICHON token to track the losses suffered by Pickle DAI Jar during the attack. CORNICHON tokens will be generated based on a snapshot of the balance at the time of the attack, and will be distributed proportionally to users who have suffered losses. The specific details of CORNICHON have not been disclosed.