The founder of the DeFi project yEarn.Finance, Andre Cronje, presented details of the integration with the lending protocol Cream, which operates on the model of the Compound and Aave projects. He said this two days after the merger of yEarn.Finance with Pickle Finance.
Yearn & Cream v2 merger https://t.co/0PpqbKOF0P
— Andre Cronje (@AndreCronjeTech) November 26, 2020
The aim of the collaboration is to launch Cream’s second version of the protocol. The development teams will implement additional functionality to enable interaction between the two projects.
Announced yEarn Finance’s lending protocol StableCredit, which employs stablecoins and the automated market maker mechanism, will later be launched on Cream.
In contrast to the merger with Pickle Finance, governance and token economics of Cream will remain unchanged. yEarn Finance and Cream will remain largely independent. It would be more accurate to say they have a close partnership rather than a direct merger.
The Block analyst Larry Cermak believes that talk of an acquisition could only arise if Yearn Finance buys a large number of Cream governance tokens.
Not really sure this can be considered an acquisition. More like applying synergies across protocols. Until Yearn starts buying out majority of tokens that it can use to control governance
— Larry Cermak (@lawmaster) November 26, 2020
Earlier, Cronje’s initiative to merge with Pickle Finance did not enthuse everyone. Analyst Chris Black expressed bewilderment that the issue had not been put to a community vote.
“Andre basically made it clear that governance tokens are ‘useless tokens’ that people buy for some reason,” he stressed.
In an interview with Cointelegraph, Black said that today’s news would most likely be framed as “business development and integration.” He recalled that in August holders of YFI provided the core team with similar powers, he recalled.
The motivation behind the merger with Pickle Finance was the developers’ desire to help the project after a loss of $19.76 million. On November 21, an unknown attacker withdrew this amount in the Compound DAI (cDAI) stablecoin from one of Pickle Finance’s smart contracts via fraudulent swaps and a malicious storage.
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