This year has witnessed a lot of new projects in the Defi landscape. An interesting development has been the rise of aggregator services. Arguably the most successful of them all is Yearn.Finance.
Yearn was born as a lending aggregator. Their platform offered a way for lenders to switch between lending protocols dYdX, AAVE, and Compound in order to maximize their yields. Yearn currently incorporates several “products” that allow the user to optimize returns in different Defi areas.
As the Defi space matures, many upstarts will probably be surpassed by their competition and slowly fade out of the public eye. Those who want to remain relevant mush be a step ahead, and that’s what Yearn has just done.
Yearn has gone out on a rampage, looking to integrate other projects into the Yearn “brand”.
First it was Pickle Finance, which offer a suite of yield farming solutions (called pickle jars) for Curve, Uniswap and Compound. On November 24, Yearn’s founder Andre Cronje announced the star of a “symbiotic relationship” with pickle finance.
After that move, Cream Finance for lending, Cover Protocol in insurance, and Akropolis for yield optimization have all come under the Year umbrella. This portfolio of partnerships or mergers all help Yearn expand their expertise into the main Defi sectors.
The merger between Yearn and Sushiswap will bring many advantages. This move will allow to combine technical features for market infrastructure. It would also entail a merger of liquidity between both protocols. Shared developer and financial backing between both protocols pretty much assures that they will be able to remain competitive in the Dex segment and be a force to be reconned for the foreseeable future.
The exchange of tokens from each other’s treasury will help bolster both Automatic Market Maker platforms. Both protocols will remain independent, yet the shared resources will allow them to evolve and better meet the public’s needs.
The crypto currency markets have recognized the importance of the merger. YFI token has risen to a high of USD 32 000, and after a correction is now trading at USD 29 000. Meantime, the Sushi token reached USD 2.32 some 51% higher than its pervious valuation, and is currently holding steady around USD 2.00.
It must be noted that there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.
