‘Merger Frenzy’ for Yearn Finance Ongoing with Cover Acquisition

‘Merger Frenzy’ for Yearn Finance Ongoing with Cover Acquisition

One of the most exciting crypto projects in 2020 has been Yearn Finance. Now, it appears that it will also finish the year on a strong note. In the latest news, the founder of the decentralized finance (DeFi) project, Andre Cronje announced that they had acquired Cover, a market coverage provider. Cronje explained in a blog post that the merger with Cover would be completely natural for the DeFi project. The developer disclosed that the two projects had actually been collaborating since the launch of the Cover. He went on to say that this merger would bring about a range of useful synergies, which includes enhanced utility of the CLAIM token by Cover. 

Moving forward, CLAIM will also be transitioned into a borrowable asset and would act as collateral for Yearn. As far as Yearn Finance is concerned, this partnership with Cover would provide it increased security for its vaults because of the optimal market coverage it has to offer. Apart from that, Cover will also be working as a provider for other protocols in the decentralized finance (DeFI) space. This means that it will now be possible for developers to create their coverage ecosystems without incurring any additional costs. This merger with Cover is the latest in what seems to be an alliance frenzy for the protocol.

On Wednesday, Yearn inked a deal with Pickle Finance, which is its first major decentralized finance (DeFi) collaboration. As per the reports, the partnership will allow both companies to try and optimize their yield farming activities. Simultaneously, they will also be providing compensation to victims of a recent exploit on Pickle, which resulted in the loss of user funds in DAI, which were worth $20 million. According to an announcement by Cronje, this new move would be helpful in rooting out any duplicate work. 

Moreover, it will also assist developers in improving specialization, as they will be able to leverage the expertise of both the companies. Referred to as ‘Pickle Jars’, the Pickle finance vaults are clones of the v1 vaults, which means that they have a similar code. Yield farmers are given incentives by Pickle Finance for selling stablecoins that are trading above the peg and purchase those that are trading below. In this way, the protocol is able to keep the coins aligned with the US dollar, which is their value peg. Cronje said that they would merge Yearn’s v2yVaults with the Pickle Jars. 

This merge will also include the total value locked of the protocol, with Cronje stating that they will be conducting a lot more integrations in the future. It didn’t take long for Cronje to confirm that Yearn also has plans of merging with an upcoming DeFi lending protocol known as Cream. The two protocols will also be collaborating for the launch of Cream v2. The two firms will also bring together their development resources and their DeFi protocols will have several interactions. Yearn users will be able to use the partnership for putting their value tokens up as collateral for borrowing CREAM.