Recently, Andre Cronje announced a partnership between Yearn Finance and the recently hacked Pickle Finance, which required no vote. But what does the partnership entail and how do both entities plan to work together? Why did the Yearn community have no chance to approve the partnership?
Inside the recent article, Yearn Finance creator Andre Cronje describes the new partnership as being symbiotic. Created to reduce duplicate work, increase specialization, and leverage both team’s experience, the partnership is designed to help both parties.
The partnership brings forth massive changes that have not been discussed before. For example, the vaults of both protocols will merge into one. Pickle will implement ‘Reward Gauges’ based on Pickle emissions which will distribute tokens. By depositing vault shares in these gauges, users can earn additional rewards.
Furthermore, users can earn voting power by locking their tokens for specific dates, receiving DILL in return.
The blog post also notes that depositors can earn even more rewards by locking Pickle for DILL, with a bonus up to 2.5X. All deposit, withdrawal, protocol, and performance fees also go to DILL holders from now on. Last but not least, the protocol introduces one more token called CORNICHON which tracks losses from the recent hack. This token will be proportionally distributed to all victims.
Pickle Finance has most likely partnered with Yearn Finance to fund a reimbursement program. Not only will they recover its reputation, but the team will also help recover the assets that the community lost in a recent hack.
Yearn Finance community has no reason to vote, explains developer
As expected, a majority of DeFi enthusiasts did not take the new decision lightly. Most on Crypto Twitter responded to Cronje’s Twitter post by calling it unethical and immoral. Moreover, a significant portion of individuals believes that the new partnership would completely ruin the Pickle token and its purpose.
However, governance represents the most important issue per the community. In this case, the partnership should have been proposed by Cronje through the governance model, and not instantly implemented. By doing so, he would give the community a chance to approve the decision. However, this was not the case as the partnership was worked on behind the scenes without any prior discussion.
Nevertheless, one user decided to explain exactly why the team has no obligation to hold a governance proposal. Working at the Organizational Ops division at Yearn Finance, Twitter user Tracheopteryx clarified the situation.
He began by listing each change and explaining why it requires no input from the community. With the vault merging as the primary concern, the developer explained that all Yearn Finance vaults remain completely permissionless Therefore, anyone has the opportunity to create new vaults. On that account, there is no reason for YFI holders to vote for the change.
As for the other changes, he stated that most updates introduce new features to the Pickle Finance protocol. Since they add nothing to Yearn Finance and influence the project in no way, the YFI community has no basis for holding a governance proposal. In the end, Tracheopteryx stated the following:
That’s it. Nothing for $YFI to vote on. The yearn community is amazing and decentralized governance is a powerful tool that helps enable the type of sovereign and permissionless contribution we see here in this partnership. Yearn is for builders not bureaucrats. <3