Two days after Yearn Finance (YFI) and Pickle Finance joined forces in DeFi’s first efficient merger, Yearn founder Andre Cronje printed particular
Two days after Yearn Finance (YFI) and Pickle Finance joined forces in DeFi’s first efficient merger, Yearn founder Andre Cronje printed particulars of one other upcoming integration with Cream, a lending protocol much like Compound and Aave.
The weblog submit, printed on Thursday, outlines how the 2 protocols will cooperate for the launch of Cream V2. As a part of the partnership, the groups will merge improvement sources and introduce a number of symbiotic interactions between the 2 protocols.
Yearn customers will be capable to put their vault tokens — their share in a yield farming technique fund — as collateral to borrow on Cream. Moreover, the farming methods will be capable to entry leverage on the platform, doubtlessly rising their yield.
The cooperation will proceed with future releases, with Cream specializing in lending merchandise. Steady Credit score, an upcoming lending platform constructed by Yearn, will probably be launched via Cream. A zero-collateral protocol that might permit extra flexibility in lending was additionally teased as a future improvement.
Not like with Pickle Finance although, the governance and token economics of Cream will stay unchanged. The 2 protocols will stay largely separate, with synergies extra resemblant of a really shut partnership, somewhat than an outright merger.
The neighborhood had raised issues about not being consulted earlier than the Pickle Finance merger, suggesting that the matter ought to have been put up for a vote. A group member later clarified that it technically didn’t require approval since a lot of the integrations had been on Pickle’s aspect.
Chris Blec, a DeFi researcher who typically takes an adversarial view of occasions, believes that these selections spotlight that governance tokens provide much less management than folks count on.
In a dialog with Cointelegraph, he clarified that a lot of these selections would possible fall underneath the umbrella of “facilitating enterprise improvement and integrations,” one of many decision-making powers that YFI holders granted to the core group in August.
The Yearn neighborhood has up to now reacted positively to the Cream integration, however most have but to course of the announcement.
Whereas the core group appears to be inside their rights to approve partnerships and mergers, these actions might set off additional dialogue of the function of the YFI token holders within the Yearn ecosystem.