The decentralized finance protocol yEarn.Finance announced the acquisition of SushiSwap, a fork of the leading non-custodial platform Uniswap. The founder of the project, Andre Cronje, said.
As part of the deal, assets locked in SushiSwap (TVL) will be moved to yEarn.Finance. The latter’s TVL, according to DeFi Pulse, stands at $455 million. SushiSwap’s TVL at the time of writing is over $730 million.
Data: DeFi Pulse.
After the deal closes, the project’s available capital will total almost $1.2 billion. This will make yEarn.Finance the second-largest decentralized exchange (DEX) after Uniswap. The latter’s TVL is estimated at $1.36 billion.
Cronje argues that the rationale for merging yEarn.Finance and SushiSwap is largely driven by the similar functionality of the two projects.
“The strategies of yEarn.Finance require the experience of a customised AMM [automatic market maker], and SushiSwap expands the boundaries of yield farming and money markets,” Cronje said.
SushiSwap will also assist yEarn.Finance in launching the Deriswap platform, which will feature swaps, options and a lending function.
“Yearn will participate in the governance of Sushi by adding a little SUSHI to its treasury. SushiSwap will also participate and add its own YFI,” Cronje said.
In the wake of the news, both tokens posted strong gains: SUSHI up 30% in 24 hours, and YFI up 10.5% (according to CoinGecko).
This marks Cronje’s sixth announced acquisition. Earlier in the week, the integration of yEarn.Finance with the Cream lending protocol, the Pickle Finance project and the Argent wallet, the Akropolis project and the Cover Protocol peer-to-peer insurance market took place.
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