Yearn Finance is on a merger spree as it is looking to increase its foothold in the cryptocurrency markets with more substantial DeFi players.
Yearn Finance announced a possible merger with Automated Market Maker Sushiswap, which would help both the companies to expand their business substantially.
Yearn Collaborates With SushiSwap
In a blog post published by Yearn Finance Creator Andre Cronje, Sushiswap and Yearn protocol are coming together. Yearn recently announced amalgamation with Pickle protocol; it has already merged with Akropolis, Cover, and Cream protocols in the past.
With Sushiswap being its largest merger, Yearn would substantially explore a more extensive customer base as the Sushiswap protocol has a bigger market than Yearn. While the Total Value Locked for Yearn Finance is $440 million, the same for Sushiswap is $732 as per data by DeFiPulse.
With the deal in place, both the protocols’ development resources would merge, and the Total Value Locked would also be added up.
As per Andre Cronje, with both Sushiswap and Yearn developing their systems, there was a lot of overlap in the strategies and development tasks, thus it makes sense that the two come together for a mutualistic relationship. He noted that While Yearn requires ” custom AMM experiences for their strategies, and Sushi started pushing the boundaries of yield and money markets.”
The blogpost detailed the technicalities of the merge and the various endeavors which would be accomplished as part of this collaboration. Sushiswap would complete the launch of its Deriswap in the partnership, and the Yearn Keep3r would be integrated inside Sushi bar V2. The blog also detailed that the Yearn will enable xSushi Vaults creation for the holders to earn through Sushi=ETH-YFI-wBTC tokens
Deriswap is the upcoming Sushiswap project which aims to combine the various DeFi offerings like Options, Swaps, and Loans on a single platform. The blog also noted that the Yearn would take part in the Sushi Governance, adding some SUSHI tokens to its treasury, and SushiSwap would do the same by adding YFI tokens to its treasury.
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