Decentralized finance (DeFi) protocol Yearn has had an eventful week of new mergers, acquisitions, and further tweaks to its farming strategies.
Yearn Finance has been expanding its reach in the DeFi ecosystem by absorbing a number of smaller protocols, the latest of which being Cover, a market coverage provider.
In the announcement, founder Andre Cronje stated that it was a natural collaboration since Yearn developers have been working with Cover Protocol coders since its inception. Cover will be providing a wider range of coverage and accepting more types of collateral in addition to making its native CLAIM token a borrowable asset.
Cover will also be used as a provider for other DeFi protocols, allowing communities and developers to create their own coverage ecosystems with no additional overhead, the blog post added.
In early September, Yearn partnered with Nexus Mutual to launch yInsure, so providing coverage for its investors is a clear priority.
Consuming DeFi Protocols
A merger with the C.R.E.A.M. lending platform also took place last week as the two teams joined forces to launch Cream v2 which will enable earning yield with leverage. The announcement added;
“This is an exciting new development for us as we have been evaluating how to incorporate a lending platform natively into our ecosystem, and also find a suitable partner to help us launch StableCredit.”
Governance token lending platform PowerPool integrated Yearn’s native YFI token last week. The protocol oversees the PowerIndex, a decentralized ETF consisting of eight governance tokens.
The mergers have generally been seen as a good thing for the DeFi sector though some have questioned the lack of governance voting for such large decisions;
It appears that Yearn is also amassing resources in terms of developers that come with these new partnerships:
“Yearn is a yield-aggregator and relies on composability of many different protocols within DeFi on the Ethereum blockchain. This translates to a developer community that encourages collaboration between other developers and protocols in order to create new, innovative technology.”
YFI Price Outlook
Yearn’s native YFI token is up almost 6% on the day as crypto markets recover from a weekend attack of the bears.
Trading at just over $26,000, YFI prices have over doubled in November as the token leads a DeFi recovery. In terms of total value locked, Yearn Finance has $445 million which places the protocol at tenth in the TVL list according to DeFi Pulse.
Collateral on the platform has fallen to half of what it was in early September, however.