It has been a busy week for the decentralized Finance [DeFi] protocol, Yearn Finance as it continued its merging spree. In less than a week, after two high profile integration, comes yet another development of a similar agreement, this time with Cover Protocol.
In an official blog post, Yearn Founder Andre Cronje announced that the DeFi protocol has joined forces with market coverage provider, Cover Protocol. It further revealed that the developers of the two platforms have been working together for a long time, since Cover’s inception to be precise, hence the collaboration was “natural” for both the parties.
The two teams would be working together as one in a bid to optimize, enhance, and amplify the work that is already in progress. Yearn will be focussing on its vaults, while Cover’s role entails as the backstop coverage provider for the Yearn product suite, as well as for DeFi as a whole.
While outlining a series of promising possible synergies, Cronje went on to include an enhanced utility for the Cover’s CLAIM token, which will act as collateral and become a borrowable asset for Yearn, as well as enhanced security for Yearn vaults via Cover’s market coverage. In addition, Cover products such as perpetual coverage will also get an expanded addressable market.
TWJ had previously reported how Yearn Finance has plunged in with the opportunity after Pickle Finance’s hack and announced the collaboration with the platform to create new vaults and strategies. Two days later, Yearn tapped Cream Finance. It is important to note that both the platforms were onboard for the purpose of enhancing the core competencies of Yearn while also pushing the protocol into new markets simultaneously.
Yearn Finance [YFI] Returns From A Bearish Hiatus
Yearn Finance’s native token [YFI] has positively responded to the developments as it took a surprising turn after laying low for more than a month. It recently neared $30K, a level that was last seen in September.
At the time of writing, YFI settled at a price of $23,372 after a minor surge of 1.72% over the last 24-hours. Another crucial factor of the rise of the token was the Bitcoin’s rally. While at press time, the selling pressure seems to have overpowered both Bitcoin and Ethereum, on the other hand, YFI’s technicals remained strong.
— UB (@CryptoUB) November 27, 2020