What does the collaboration between Pickle, Cream, Cover, Sushi, and Yearn mean?

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Yearn Announces a Series of Collaboration Projects

Recently, decentralized finance (DeFi) platform Yearn announced multiple collaboration projects, including Pickle, Cream, Cover, and Sushi, with almost every project experiencing significant price increases following the news. However, Yearn's collaborations are not merely aimed at boosting token prices; their ultimate goal is to build a comprehensive DeFi ecosystem.

The collaborations announced by Yearn recently are mostly carried out through "development team mergers" and "protocol collaborations." Yearn founder Andre Cronje wrote a special post on November 30th, explaining the recent series of actions in anarticle.

Pickle

When Pickle announced that $20 million worth of Dai was stolen by hackers, Yearn's collaboration news helped rescue Pickle's token price from the bottom, providing compensation for the victims. Some Pickle victims see Andre Cronje as a savior who collaborated to save Pickle, but in reality, their collaboration is not based on emotional reasons.

Andre Cronje stated that the reason for choosing to merge with Pickle is that both Pickle and Yearn's development teams are researching revenue strategies and often use similar strategies. From the perspective of merging development teams, it is quite logical. After the merger, Pickle's core developers can focus on strategy research, while Yearn can provide additional security, auditing, and discussions. However, Andre Cronje emphasized that although Pickle and Yearn have integrated development resources, they are still independent brands.

Cream

Andre Cronje pointed out that the collaboration between Cream and Yearn is quite powerful. Cream's lending function helps Yearn leverage its liquidity mining strategies, thereby enhancing its revenue-generating capabilities. In other words, Cream can be positioned as a lending platform core to meeting liquidity mining needs.

Additionally, Andre Cronje stated that many decentralized lending platforms in the current market focus on different aspects. For example, Aave and Compound are platforms designed for end-users to provide lending and borrowing markets, DyDx is a lending platform tailored for leveraged trading, and Synthetix is a lending platform centered around synthetic assets.

The development teams of Yearn and Cream will collaborate to achieve a "protocol-to-protocol reserve service." This design helps other protocols (such as Aave, Compound, DyDx, Synthetix, and Alpha Homora) attract more funds while not limiting their resources.

Cover

Andre Cronje believes that the Cover protocol can be divided into four cores: "core insurance products," "prediction markets," "perpetual insurance," and "insurance as a service." The Yearn development team will provide security and review assistance for the above four points, but will particularly focus on the collaboration of "perpetual insurance" and "insurance as a service" because "insurance as a service" allows the YFI token to become a insurance ecosystem within the Yearn platform, and "perpetual insurance" allows Vaults to extract premiums from earnings to hedge risks, which may reduce returns but effectively hedge contract risks.

Sushi

The most recent collaboration announced is the integration with automated market maker (AMM) protocol SushiSwap. Andre Cronje wrote in anarticle:

"Yearn's asset management strategy requires AMM-related expertise, and Sushi is also starting to promote revenue products and currency market operations, making the development overlap increasingly evident."

In this case of overlapping business development, the combination of both parties can be seen as a mutually beneficial decision, as well as a quite aggressive collaboration that helps both expand into larger territories. Additionally, Andre Cronje pointed out the synergies after the merger, including: "Sushiswap and Yearn merging development resources and treasuries," "Sushiswap assisting Yearn in developing and launching Deriswap," "Keep3r liquidity shifting to Sushiswap and integrating with Sushibar v2," among others. Moreover, Sushiswap will also collaborate with Cover and Cream to expand more functionalities.

Currently, the Sushiswap community has initiated two proposals for the "Yearn and SushiSwap merger," and if the proposals pass, core developers will be notified and deployed by the Sushiswap team.

Independence and Mutual Benefit

This series of integrations is not like traditional markets where two independent companies merge into a single entity. Decentralized finance allows each project to remain an independent entity while achieving team mergers, protocol collaborations, with shared goals and a vision of mutual benefit. Even though these projects are centered around Yearn, resource sharing and protocol collaborations help them create more possibilities for each other, and the future development of Yearn's ecosystem is unimaginable. As Andre Cronje said:

"I don't know how to describe this kind of collaboration, but I am very excited about the future under this collaboration."