December began on a positive note for Yearn Finance as Andre Cronje announced another merger, this time with the infamous Sushiswap protocol.
The partnership will take their relationship to a higher level, introducing synergies that are beneficial to both parties. Cronje announced the merger in a Medium blog post on December 1.
Before divulging further regarding the partnership itself, Cronje expressed his opinion about SushiSwap. After all, the project has been highly controversial since its inception.
However, we have seen that the situation calmed down especially as the original founder stepped down and new developers began to onboard.
Cronje notes that as he started to work with 0xMaki, the lead developer at SushiSwap, he has developed respect for both the individual and the protocol.
Seeing their hard work, the Yearn Finance founder believed that SushiSwap is invaluable to have in his DeFi journey.
Currently, both protocols have entirely different objectives. However, each team can leverage the expertise of the other party to achieve their goal. While SushiSwap expands its AMM ecosystem Yearn Finance looks towards expanding strategies. Cronje believes that these two focuses overlap and that a partnership offers multiple synergies.
With these overlaps, more and more work started to become mutualistic, and at this point, it makes to take the relationship to the next level.
– Yearn Finance creator Andre Cronje
As for this merger, the Yearn developer believes that it offers aggressive synergies. As the partnership leads to core changes, Cronje revealed that the governance model will need to be used for some things. But in the end, his opinion is that the merger will only help foster the ecosystem and create something far greater.
What does the Yearn Finance & SushiSwap merger bring?
As with any other previous merger, which includes Pickle Finance and Cream Finance, the merger will bring many synergies that we have seen before. As in this case, Sushiswap and Yearn Finance will merge development resources and their total TVL will increase. But there is something that no one has expected.
According to the Medium post, Sushiswap will not only help with developing Deriswap but it will also complete the new platform and launch it.
As Defiye previously reported, Deriswap is a new protocol developed by Andre Cronje, which introduces an all-in-one platform. Among all its features, Deriswap also offers options trading for DeFi tokens.
One synergy also mentions the integration of Keep3r inside the Sushibar V2. We also see multiple entries that showcase integrations between Keep3r and SushiSwap, which may imply that their relationship is of the utmost importance in this deal.
We also note that the blog post mentions one secret upcoming project that Cronje has not mentioned before. One entry states that Sushiswap ‘will be involved in a stealth project following Deriswap’. Therefore, we will not only see a new innovative protocol in the near future. We will also see one more at the start of 2021! While nothing about the project has been mentioned so far, we expect the teams to launch it in Q1 2021.
What needs to be voted on?
One section of the synergies is marked as features that require governance voting. Within the list, there is nothing controversial which the community would dislike. However, they still bring major changes which the Yearn team believes to require voting. Apart from new changes for vaults and Yearn participating in Sushi’s governance, there is no controversial change. But you can judge the list yourself:
