Yearn Finance and Pickle Finance have created a new partnership to increase yield farming incentives. Also, the partnership aims at compensating the victims of the Pickle exploit that cost the exchange close to $20 million DAI.
Yearn Finance founder Andre Cronje announced that the partnership would reduce increase specialization, reduce unnecessary duplicate work, and also enable the two partners to share expertise and improve. The code for Pick Jars or vaults is the same as Yearn’s v1 yVaults. So, such a partnership will be easier to manage.
According to Andre Cronje, the first thing they’ll do is to merge Yearn’s v2 Vaults with Pickle Jars. Then they’ll also merge the two protocols TVL. Cronje also revealed that they have plans to carry out further integrations as they move on.
From all indications, the reason behind the partnership is to yield farmer’s returns as Pickle strategies will earn higher performance fees via the new fee structure on Yearn Finance.
Also, Yearn Finance also plans to use Pickle developers & strategy creators to design new fee and strategies structures for these new vaults.
Pickle also will provide reward gauges using tokens distributed to people who stake Yearn Finance vault tokens. They’ll lock the token in escrow and call it DILL. Users can, through the token, become participants of Pickle governance.
Members of the community had asked if those decisions didn’t require a governance vote, but a team member of Yearn has assured them that there’s no need for that.
According to the team member, creating the new vaults are permissionless. Therefore, there’s no need for voting on the decision. He also pointed out that the newly created gauges won’t be emitting Yearn’s tokens but Pickle tokens.
The Pickle Finance Hack
Hackers stole close to $20 million DAI in the recent Pickle Finance hack. Due to the loss of funds, its token PICKLE fell by 50% on the 21st of November from $23 to only $11. Just after the news of this merger hit the community, PICKLE soared close to $30 but later went low to $16.