DeFi protocol Yearn.Finance announces fifth merger, this time with Uniswap fork SushiSwap
Decentralized finance (DeFi) protocol Yearn.Finance has announced yet another merger, this time with SushiSwap, a fork of decentralized exchange Uniswap.
As part of this deal, Yearn and Sushiswap’s development resources will merge, and their total value locked (TVL) would combine. The current TVL of Yearn is around $455 million, and SushiSwap’s TVL is about $730 million, according to tracker DeFi Pulse, making it Yearn’s biggest merger thus far.
Yearn founder Andre Cronje said the protocol’s work with SushiSwap was overlapping, and thus it made sense to merge the two projects.
“As Sushi focused on expanding their AMM [automated market maker] ecosystem, and as Yearn focused on expanding their strategies, more and more overlap became apparent, Yearn needed custom AMM experiences for their strategies, and Sushi started pushing the boundaries of yield and money markets,” said Cronje. “With these overlaps, more and more work started to become mutualistic, and at this point, it makes to take the relationship to the next level.”
SushiSwap will also help Yearn develop and launch its upcoming project, Deriswap, which would combine different segments of DeFi — swaps, options, and loans — into one platform.
“Yearn will participate in Sushi governance and add to its treasury some SUSHI. SushiSwap will participate and add to its treasury YFI,” said Cronje.
Last week, Yearn also announced an integration with crypto wallet provider Argent. That collaboration means DeFi users can access Yearn’s vaults directly from their Argent wallets.
Update: This story and its headline have been updated to mention that SushiSwap is Yearn’s fifth merger, including Cover.
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Author: Yogita Khatri