Yearn founder André Cronier announced this morning the final step in a series of high-level mergers and collaborations under the multilateral decentralized finance protocol (DeFi): Yearn Finance will “merge” to secure market coverage.
In his blog, Cronje notes that inclusion would be a natural order, as the developers of Yearn and Cover have been working together since Cover was created. Cronje also listed a number of promising potential synergies, including the extended benefit of Cover’s unique CLAIM premium token, which will act as collateral and be a lendable asset to Yearn, and which will also increase the security of Yearn Cellars by covering the market.
The inclusion of Cover is the latest event in a busy week for Yearn. Yearn has announced upcoming projects with Pickle Finance crop protocol, Treasury integration with Argent crypto wallet and Cream Finance lending protocol integration.
The acquisitions show how you can improve each of Yearn’s core competencies, and push the protocol into new markets – vertical and horizontal expansion. Cream and Pickle will give you the best in Yearn’s cellars, while Protocol Cover offers a new range of products (Cover reps insist that they do not offer “insurance” like yInsure, but “coverage” instead).
However, each “takeover” has its own nuances. While Cronje’s blog post describes Cover and Cream as a “merger”, senior developer Banteg on the Twitter Pickle ad called it a “developer collaboration” and Yearn’s official Twitter account called it a “symbiotic relationship.”
Protocols or developers
One possible reason for the rapid expansion may be that working with other protocols not only improves the storage efficiency of the DeFi ecosystem, but also that the protocol can benefit from an important resource that has received special attention in recent weeks: developers.
The observer compared the actions of legendary investor and Chief Technology Officer Keith Rapua, known for his focus on attracting and managing talent:
Motivation, training and recruitment of new developers were the priorities in the protocol. Two recent annual improvement (YIP) proposals, YIP-52 and YIP-53, increased Treasury prices for smart contract engineers who developed treasury strategies and created yAcademy, a cascade program for auditing.
The latest steps show that Yearn is working outside the ecosystem to recruit talent while building internal pipelines.
Some critics pointed out that these protocol acquisitions were not approved by the YIP:
However, a member of Operation Group Yearn noted in one of the threads on Twitter that there are “differences and hierarchies” in decentralized management, and that if members of the community want to organize a merger process, they will have the opportunity. and will be supported if the proposal “looks cool”. …