Yearn Finance took over Pickle Finance following a hack.
New strategies, returns and tokens will be available for farmers.
The PICKLE price rises and falls as YFI drops 9%.
The decentralized financial platform Yearn has absorbed the Pickle Finance protocol
The move follows a hack over the weekend that resulted in the loss of $ 20 million in stabkecoins, but the community had no say in the decision.
Yearn Finance has partnered with, or rather absorbed, Pickle Finance in an effort to increase rewards for bettors and pay off some of the victims of the flash loan attack that happened on November 21.
Yearn founder Andre Cronje’s announcement said this was done to reduce duplication of work and increase specialization. Pickle was cloned from Yearn Finance, which launched a “backscratcher” vault earlier this month, as its Jars are based on the old protocol v1 vaults.
Some argue that the takeover makes sense given that they share the same code. Yearn would be able to introduce new strategies for stablecoin yield farming that Pickle is offering.
What, no vote on governance?
Usually with major decisions for DeFi protocols there is a vote on governance, however, this is also often manipulated by whales which calls the whole premise into question.
A member of Yearn’s team, using the pseudonym „tracheopteryx.eth“ [@tracheopteryx], explained why a governance vote was not necessary.
The partnership will include the merger of Yearn’s v2 chests and Pickle Jars in addition to their Total Locked Value (TVL). Since creating a new vault is permissionless, there is apparently no need to vote on it.
Additionally, the rewards will come in the form of Pickle tokens and something called DILL, which can be locked in over time for better returns. They can also be used for the governance of these chests or “gauges” as they will be called. This does not affect YFI holders so, again, no voting is necessary.
The Pickle team will migrate to Yearn and a new token called PICKLE will be launched to track the losses from the recent Evil Jar exploit. These tokens will be distributed proportionally to the victims of the attack.