Yearn Finance broadcasts one other ‘merger’ with the Cream lending protocol



Two days after Yearn Finance (YFI) and Pickle Finance joined forces in DeFi’s first effective merger, Yearn founder Andre Cronje printed particulars of one other upcoming integration with Cream, a lending protocol much like Compound and Aave.

The blog post, 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 have the ability to put their vault tokens — their share in a yield farming technique fund — as collateral to borrow on Cream. Moreover, the farming methods will have the ability 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 by Cream. A zero-collateral protocol that may 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, relatively 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 crew member later clarified that it technically didn’t require approval since a lot of the integrations had been on Pickle’s facet.

Chris Blec, a DeFi researcher who usually takes an adversarial view of occasions, believes that these selections spotlight that governance tokens supply much less management than folks anticipate.

In a dialog with Cointelegraph, he clarified that most of these selections would probably fall below the umbrella of “facilitating enterprise improvement and integrations,” one of many decision-making powers that YFI holders granted to the core crew 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 crew 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.