This morning, Yearn founder Andre Cronje 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.
In a blog post, Cronje notes that 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.
The Cover merger is just the latest in what has been a wild week for Yearn. Yearn announced forthcoming projects with yield farming protocol Pickle Finance, a 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. Cream and Pickle will enable superior efficiency for Yearn’s vaults, while Cover grants the protocol a new product line (Cover representatives insist that they do not offer “insurance” like yInsure, but instead “cover”).
There is some nuance to each ‘acquisition,’ however. While Cronje’s blog posts describes the work with Cover and Cream as “mergers,” senior developer Banteg 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.”
Protocols or developers
One possible reason for the rapid expansion might be that working with other protocols grants Yearn not just greater vault efficiencies across the DeFi ecosystem, but also allows the protocol to tap an important resource that has been prioritized in recent weeks: developers.