Yearn is "killing spree".
Since yearn announced the merger with Pickle and Cream a few days ago, the founder of yearn, AC, once again announced the merger with the decentralized insurance protocol Cover (although Cover does not consider itself to be insurance in the real sense), in the blink of an eye, in the DeFi world The merger seems to be a heat wave and trend.
Similar to some wise companies, yearn is very good at expanding its business lines through mergers: by absorbing Pickle to improve the yield of its income farming (Pickle is actually a forked YFI, this merger is like Dad bringing back his own son), by absorbing Cream, not only can improve yearn’s efficiency like Pickle, but also increase yearn’s own lending business. At the same time, yearn also absorbs Argent, a well-compatible wallet product.
Regarding the Cover project, AC said on the blog that the merger was natural. When the Cover project was first launched, there were many yearn team members working with them. Of course, the merger was in-depth. Next, AC It is planned to use Cover's CLAIM token to expand yearn's lending function, that is, to use CLAIM as a mortgageable loan asset. In this way, Cover provides yearn with ultimate property protection against potential attacks by hackers.
In fact, the merger of yearn is a group cooperation between developers or a "symbiosis" of developers.
In the world of open source software, collaboration is much more popular than going it alone. Although people in the DeFi field prefer to fork their own projects out of the team to satisfy the interests of the forks, recently, with the cooling of the DeFi market, the vast majority of DeFi projects, whether they are forked projects or not , have slowly died out, and there is no way to return to heaven.
Similar to the Internet market, after industry reshuffle and market selection, there are only a few ace projects left in DeFi, and they have the largest user base, lock-up volume and return rate. Capital always pursues the maximization of benefits. Against the background of the skyrocketing Bitcoin, a lot of DeFi funds have left this field and followed Bitcoin, which has caused the rate of return in the entire DeFi field to decline. Therefore, various teams began to consider re-cooperating, returning to the cultural tradition of open source, and seeing whether the rate of return could be improved through project mergers.
On the other hand, the contract security and financial security of DeFi have always been a headache. The recent extremely frequent flash loan attacks have made developers start to think: should we cooperate?
If only developers think this way, the merger will not be so smooth, but the appeal of the community made the merger possible-after all, stakers are the biggest stakeholders. The yearn community has been generating proposals on recruiting developers, among which YIP-52 and YIP-53 are representative. The former calls for recruiting more smart contract development engineers to improve the strategy of the machine gun pool, and the latter calls for more Build a "yAcademy" dedicated to code security auditing! And this series of mergers is precisely the great embodiment of AC's desire to expand the developer team.
We can see that yearn specially selects star projects with ultra-high lock-up volume, hoping to join forces to occupy all aspects of the DeFi market. In the end, it turns out that the merger of yearn has brought a good response. The developers of these projects have worked together to greatly improve the overall code security of yearn. More importantly, the total lock-up volume of several projects has also been added together, which has greatly consolidated yearn's industry position, which will also prompt people to lock in more funds. In addition, the excellent UI and UE of the Argent wallet enable users to have a better interactive experience when using yearn's various machine gun pools.
In terms of the market, the price of YFI has also been heard to rise by more than 25,000 US dollars, and traders believe that YFI is expected to rise above 30,000 US dollars, because the market has received greater support.
Obviously, the actions of yearn will trigger other projects to think about the necessity of mergers, which may cause other complementary projects to merge with each other to compete with the powerful yearn. It is foreseeable that DeFi will come to the era of oligarchy. However, not all DeFi projects necessarily need to be merged. Merger is a double-edged sword. From the perspective of the community, the community may think that this behavior will reduce the purity of the project itself and destroy their inner beliefs. Therefore, the merger may have the consequences of community division. After all, most of the projects merged by yearn are either its forks or the teams that already have yearn in the project.
As mentioned above, yearn’s merger also has the background of a general decline in DeFi yields. From the perspective of the whole industry, the weight of income farming in DeFi is constantly decreasing. The entry of many traditional financial businesses has enriched this field. In the future, it remains to be seen whether these new businesses will be merged and whether the merger will be effective. .
