SushiSwap is the latest DeFi project to combine forces with Yearn Finance as Andre Cronje’s protocol continues with its merger spree to expand services to the addressable market.
As the announcement became public, there were no remarkable price jumps $SUSHI on the day of the announcement, however, it kept its price around $1-$2, a 98% decrease from an all-time high of $168.91. Sushi founder ‘Chef Nomi’ made the huge sell-off where he urged his focus not on price but the next technical builds, where the next phase of this project will blend options, loans, and swaps into one contract.
Despite the Sushi debacle where the founder sold-off $14M, $SUSHI experienced a 73% drop and attracted accusations of an exit scam, Yearn moved forward into a merger. This technical partnership allows Sushi to direct their focus on expanding their AMM ecosystem, and Yearn to bring in AMM offerings for their money markets strategies. Sushi was another victim in the recent attacks, losing a mere $15K of the $100M ecosystem lost last month.
SushiSwap is (Sushi), an automated market maker (AMM) protocol, which realigns incentives for network participants by introducing revenue-sharing communities to the popular AMM model. Yearn and Sushi would be the largest merger yet and is the first time Yearn would be joining hands with a DeFi protocol that’s larger than its own. Per Coingecko’s data at the time of writing, SushiSwap’s TVL is $745M while Yearn’s is $450M.
The Sushi merger is the first one in Yearn’s latest partnerships which will have some aspects be put up for a token vote. Yearn merger to be put up for a vote. Nonetheless, only some of these specific items will be deliberated on by the community.
Change of Governance
Yearn and Sushi is one of the more aggressive synergies, and as such, core items are to be voted on via governance. SushiSwap governance and tokens will remain separate from Yearn, with plans to connect the two projects’ treasuries to let each have a stake in the other, if approved by token holders . Other integrations that will be put up for a vote include a SushiSwap liquidity incentive for some of Yearn’s yield farming pools to be allocated by Yearn.
Yearn will help create an xSushi vault to farm SUSHI, Ether (ETH), YFI and Wrapped BTC (wBTC) and it will use SushiSwap as the automated market maker of choice for its yield farming strategies.
Sushiswap will provide perpetual coverage for money markets, removing the need for active management.