Leading DeFi protocol Yearn.finance seems to be in the mood for mergers this season. Barely a week after merging with lending protocol Cream, Yearn.finance has announced a merger with Uniswap competitor Sushiswap.
Founder of Yearn.finance Andre Cronje took to Medium today to share details of the merger. Cronje said that the partnership would be beneficial to both SushiSwap and Yearn.finance. For Sushiswap, the merger would help it to broaden its Automated Market Maker (AMM) system. It would also give Yearn a platform to improve its strategies.
Details of the Partnership
Both protocols would be combining their development resources as well as the Total Volume Locked (TVL) on their platforms. Yearn will now be able to partake in Sushiswap governance and will add its native token, SUSHI, to its treasury. The same holds for Sushiswap as it will also add YFI, Yearn’s native token, to its treasury.
Perhaps the most important aspect of this partnership is the launch of Deriswap. Deriswap is a DeFi protocol that promises to integrate a range of DeFi services into one contract. Sushiswap furthermore will finish up the protocol and launch it in conjunction with Yearn.finance. Crone also hinted at another project saying “Sushiswap would be involved in a stealth project following Deriswap release with Yearn.”
Speaking on the merger, Cronje believes that it is a “more aggressive synergy” which leaves few items to be voted by governance. He also spoke on the potential of the merger saying: “I believe the items presented will not only help foster the ecosystem but help us expand to something much greater.” The merger is still pending as it awaiting governance votes from both parties.
Yearn.finance has been involved in a lot of merger and acquisition lately. Last week, it merged with Pickle finance, another DeFi project. Three days after this merger, it announced another one with Cover protocol. Just yesterday, Akropolis was added to the Yearn ecosystem. This merger with Sushiswap is Yearn’s fifth merger in two weeks.