Yearn ecosystem expands further! Integrates SushiSwap and partners with Deriswap liquidity platform

DeFi star project Yearn has been making frequent moves recently, integrating projects such as Cream, Pickle, Cover, and more. Just this afternoon (12/1), Yearn founder Andre Cronje dropped another bombshell by announcing a merger of development resources with the decentralized exchange platform SushiSwap, further expanding the Yearn ecosystem.

Collaboration Launches Deriswap

In terms of liquidity, SushiSwap is currently the second-largest decentralized exchange platform. After merging with Yearn, in addition to consolidating development resources, it is expected to further increase its Total Value Locked (TVL). The new project introduced by Andre Cronjie, Deriswap, will also collaborate with SushiSwap, covering trading, options, futures, and lending markets.

In Andre Cronjie's latestblog post, he mentioned that after the launch of Deriswap, SushiSwap will integrate with another "mystery project."

Enhancing LP Token xSushi Applications

The blog mentioned that Yearn will add an xSushi vault in the future, allowing users to earn SUSHI, ETH, YFI, and wBTC, but did not specify the exact profit strategy path.

Additionally, a currency market collateralized by xSushi is expected to be launched. The governance model of the SUSHI token will remain the same, but YFI will be added to its treasury. Yearn will participate in Sushi governance and add some SUSHI tokens to its treasury.

Merger Effect of Keep3r

Keep3r is a decentralized collaboration platform. After the merger, Keep3r will act as a liquidity provider, transferring all assets from the treasury to the KP3R/ETH pool on SushiSwap. It will also introduce on-chain limit orders, stop-loss, and take-profit orders for liquidity providers. Keep3r will be integrated into the future version of Sushibar v2.

Crypto Community's Perspective

Despite SushiSwap seeming to lose in the liquidity war against Uniswap, many influential figures in the crypto community are still paying attention to this project. FTX CEO, Compound founder, and The Block Research Director Larry Cermak are among its multi-signature governance members.

Given SushiSwap's underperformance in the third quarter, Larry, upon hearing the merger news, expressed onTwitter that this is the only moment this year he doesn't feel embarrassed about being associated with SushiSwap. However, he believes this does not mean Uniswap will be replaced. He pointed out:

SushiSwap and Uniswap will begin to resemble the relationship between Compound and Aave (lending platforms), one leaning towards traditional and more mature, the other more flexible and exotic, with both having clear audiences. They will coexist symbiotically.

This is starting to get similar to Compound/Aave. One is more traditional, more established and the other is much more flexible and exotic. They will 100% coexist as there is a clear market for both

— Larry Cermak 🫡 (@lawmaster) December 1, 2020

As one of the leaders of SushiSwap, FTX CEO Sam Bankman-Fried also congratulated the SushiSwap team and core member 0xMaki onTwitter, saying:

Sometimes, no matter how bad the project's evaluation is, when the development progress surpasses everyone, you are the winner.

It is understood that 0xMaki, a core member of SushiSwap, will become a leader of the yEarn decentralized exchange platform (presumably referring to Deriswap).

SUSHI Surges on Rumors

Since the merger news was released, SUSHI has risen from about 1.5 to 1.9 US dollars before the deadline. Today's increase has reached 22%, while Keep3r (KP3R) and YFI have not shown upward momentum, with YFI only seeing an increase of about 4%.