DeFi Protocol Yearn Finance has partnered with Pickle Finance which has resulted in a price hike for Pickle
Yearn Finance founder Andre Cronje confirmed plans to bring Pickle Finance on board. The partnership will help increase incentives for productive farming and reimburse DeFi users who fell victim to the Pickle Finance exploit on Saturday.
The popular DeFi protocol suffered a DAI loss of $ 19.7 million in an exploit described as complex code execution. The system was played with several loopholes, including jar conversion logic and jar swap, resulting in an exploit of almost half its value.
According to Messari data, the price of Pickles Token (PICKLE) fell 50.12% to $ 10.17 in the news of the exploit. After news of the merger erupted, PICKLE’s price rose to $ 26.5 but has since declined to $ 16.98 at the time of writing.
Cronje stated that the partnership aims to promote specialization and reduce duplication.
Pickle Finance safes, known as Pickle Jars, borrow heavily from Yearns v1 yVaults and are more like duplicates of the latter. Cronje claimed that the first step would be to consolidate the vaults as they have similar codes. The next would be to unify the total locked value of the logs. He added that more incorporations will follow.
“We’re excited to announce that Yearn has built a symbiotic relationship with @picklefinance,” Yearn Finance wrote on Twitter.
Yearn Finance will be working on board Pickle’s strategy developers and developers to develop new strategies and fee structures for the new safes.
The reactions of the DeFi community to the partnership have so far been mixed. A group in the Community has expressed concern by suggesting that there should be a government vote on the merger decision. The question was answered by a Yearn team member who said no governance vote was required as new Yearn vaults to be built would be without permission.
In relation to the Pickle exploit, a token called CORNICHON is created to analyze and determine the losses incurred. The partnership announcement stated that the tokens will be created in accordance with the funds at the time of the exploit. They are then distributed fairly among the victims.