Yearn.finance (YFI) mergers continue to flow as the project announces the narrowest integration of DeFi, this time with SushiSwap (SUSHI), a decentralized exchange that began life as a fork of Uniswap.
Yearn founder André Cronje announced on Tuesday that the collaboration includes a number of synergies between the two ecosystems and other projects launched by Cronje.
As with previous mergers, the two teams will pool development resources and pool liquidity pools to increase the total booked value. Yearn will help build xSushi storage for SUSHI Farm, Ether (ETH), YFI, and Wrapped BTC (wBTC).
Yearn will then use SushiSwap as the automated market maker of choice for its breeding strategies.
Many additional integrations build on sub-projects of Yearn’s growing ecosystem. Keep3r, a network for executing arbitrary orders using smart contracts, will migrate Treasury to SushiSwap and add implementations of SushiSwap limits and stop-loss orders, as well as integrate with SushiBar V2, the money-back platform.
The coverage protocol will also add the ability to secure SushiSwap’s liquidity pools through the CLAIM token system. The funding cream will provide liquidity at the upcoming Bento Box SushiSwap and add cash pool tokens from SushiSwap as collateral for lending.
The two teams will work together on Deriswap, Cronje’s future derivatives trading platform, as well as an unknown future project.
The controls and tokens for SushiSwap will remain separate from Yearn, but teams want to link the two project lockers to allow each to share. Both projects will have a governor vote, allowing owners to choose whether to direct a portion of their treasury toward purchasing each other’s tokens. Thus, in the future, both enterprises will be able to participate in each other’s management processes.
Additional mergers to be put to the vote include SushiSwap’s liquidity boost for some annual revenue growth pools to be highlighted by the year where yyveCRV pool CRV is a potential candidate. The Keep3r / ETH Pool will also be included on the “SUSHI Standing List” of SushiSwap Rewards. Finally, grants will be paid to SushiSwap developers through yGift Tokens, a non-instinctive token that contains a specified amount of money and includes a custom message.
The integration with SushiSwap is deeper than most other projects, and this is the first project that provides mutual exchange of government grants. For this reason, this is the first voted Yearn merger. However, only a few of these specific elements will be discussed publicly.
The merger with SushiSwap is the fifth seen to date and the first with the decentralized exchange platform. Previous mergers have included other revenue-enhancing protocols such as Pickle Finance, Acropolis, Careem’s Lending Protocol, and Cover Insurance platform.