Yearn Finance has joined forces with Pickle Finance in the DeFi Protocol, resulting in a price rise for Pickle
The founder of Yearn Finance, Andre Cronje, announced plans to get Pickle Finance on board. The alliance will improve rewards for yield farming and compensate DeFi users who were victims on Saturday of the Pickle Finance exploit.
In an exploit that has been described as complex code execution, the common DeFi protocol suffered a loss of $19.7 million in DAI. Several loopholes were used for gaming the method, including Jar convert logic and Jar swap, resulting in an exploit of nearly half its worth.
According to Messari info, on the exploit’s news, Pickle‘s token (PICKLE) price plummeted by 50.12 percent to $10.17. PICKLE’s price rose to $26.5 after news of the merge broke out but has since retreated as of writing to $16.98.
Cronje clarified that the purpose of the partnership is to encourage specialization and cut down on duplicate work.
Pickle Finance vaults, known as Pickle Jars, borrow extensively and are more like the latter’s duplicates from Yearn’s v1 yVaults. Cronje asserted that consolidating the vaults as they have similar codes will be the first step. The next one will be to unify the locked total value of the protocols. He went on to say that it would follow further incorporations.
â€œ..We are pleased to announce that Yearn has formed a symbiotic relationship with @picklefinance,â€ Yearn Finance posted on Twitter.
In order to build new techniques and fee structures for the new vaults, Yearn Finance will be searching for onboard strategy designers and developers from Pickle.
The DeFi community’s reaction to the collaboration has so far been mixed. A group faction has expressed concern by implying that a governance vote on the merge decision should have been taken. The question was answered by a member of the Yearn team who said that there was no need for a government vote as it was inappropriate to construct new Yearn vaults.
A token named CORNICHON will be constructed with regard to the Pickle exploit to calculate and evaluate the losses incurred. The partnership announcement clarified that the tokens would be generated in line with the balances at the time of the exploit. They would then be equitably divided among the victims.