Andre Cronje, the founder of Yearn Finance, has announced the latest in a spate of high-profile mergers and collaborations for the multi-faceted decentralized finance (DeFi) protocol. Yearn Finance will be “joining forces” with market coverage provide Cover.
It has been reported in a blog post that Cronje notes the merger will be a natural one, as Yearn and Cover developers have been working together since Cover’s inception.
Cronje also listed a series of promising possible synergies, including enhanced utility for the Cover’s CLAIM token, which will act as collateral and become a borrowable asset for Yearn, as well as enhanced security for Yearn vaults via Cover’s market coverage.
As Yearn's merger and collaboration spree continues, observers see a long-term strategy taking shape. But what do the unilateral moves mean for the protocol's governance? @Blockanalia reports https://t.co/12o4KIPG4J — Cointelegraph (@Cointelegraph) November 28, 2020
However, the Cover merger is just the latest in what has been a wild week for Yearn, as Yearn announced the upcoming projects with yield farming protocol Pickle Finance, vault integration with crypto wallet Argent, and a merger with lending protocol Cream Finance.
The acquisitions are notable for how they improve both the core competencies of Yearn while also pushing the protocol into new markets, both vertical and horizontal expansion.
As per the report, Cream and Pickle will enable superior efficiency for Yearn’s vaults, while Cover grants the protocol a new product line as Cover representatives insist that they do not offer “insurance” like yInsure, but instead “cover.”
It has been analyzed that there is some nuance to each ‘acquisition.’ While Cronje’s blog posts describe the work with Cover and Cream as “mergers,” Banteg, the Senior Developer, noted on Twitter that the Pickle announcement is a “developer collaboration,” and it has been described by the official Yearn Twitter account as a “symbiotic relationship.”
In addition, one observer compared the moves to those of legendary tech executives and investor Keith Rabois, who is notable for his focus on talent acquisition and management.
Andre is clearly pulling off some Galaxy brained moves. Scooping up talented developers and monopolizing talent is a move straight out of @rabois But that doesn’t mean YFI is worth anything. — Tyler Reynolds (@tbr90) November 27, 2020
Incentivizing, training, and bringing in new developers have also been a priority for the protocol.
Thus, two recent Yearn Improvement Proposals (YIPs), YIP-52 and YIP-53, increased the quantity of vault rewards allotted to smart contract engineers who develop the vault strategies and established the “yAcademy,” an audit training program.
Source: Cointelegraph