DeFi Protocols Yearn.Finance and SushiSwap Announce Merger

In yet another decentralized finance (DeFi)-related M&A (merger and acquisition), Yearn.Finance and SushiSwap have announced a partnership between both protocols. The news marks the first of such mergers for DeFi bluechip Yearn.Finance as it continues to gain a larger presence within the emerging market sector.

Details of the Merger with SushiSwap

Yearn.Finance creator Andre Cronje announced the merger in a Medium blog post published on Tuesday (Dec. 1, 2020). The news marks the fifth such merger between Yearn.Finance and another DeFi project including the likes of Pickle Finance.

The deal will see both DeFi protocols combine their developmental resources thus creating an aggregated total value locked (TVL) sum. Together, both projects command about $1.2 billion worth of Ether (ETH) in TVL. Indeed, data from DeFi aggregator Defipulse.com shows Yearn.Finance’s current TVL at $457 million while SushiSwap is at $738.

Commenting on the importance of the merger, Cronje wrote:

“As Sushi focused on expanding their AMM 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.”

As part of the collaboration, SushiSwap will aid Yearn.Finance in the completion and launch of the latter’s Deriswap project. Back in November, BTCManager reported that roll out of the Deriswap protocol envisioned as a consolidated DeFi ecosystem encompassing swaps, options, and lending markets.

As part of the merger, Cronje’s Keep3r network will be integrated inside the Sushibar v2 protocol. Keep3r is a decentralized network that connects projects will suitable external developers to carry out developmental tasks on smart contracts, decentralized apps (dApps) among others.

The planned merger will not cause any drastic changes to the governance protocols of both projects. According to Cronje, the Sushi token and governance will remain the same.

After completing work on the Deriswap platform, Cronje says SushiSwap will handle a “stealth project.” The announcement did not offer any specific details as to the nature of this mysterious project.

Yearn.Finance’s latest merger announcement has given a significant boost to the YFI governance token. As of press time, YFI is up almost 10 percent in the last 24-hour trading period. YFI took the DeFi scene and indeed the crypto market by storm when it rallied 8-fold back in August.