Yearn.finance Announces Partnership With Cream and New Lending Project: Stable Credit

Yearn.finance founder Andre Cronje has recently published details of an upcoming integration with Cream, a lending protocol in the decentralized finance (DeFi) ecosystem. For the launch of Cream V2, Cronje explains the integration of the two protocols in a blog post.

In Cronje’s blog post, the two protocols will merge development resources for introducing interactions between the two protocols. 

For Yearn.finance’s users, they would be able to use their share in a yield farming strategy fund as collateral to borrow on the Cream protocol. Users would also be able to access leverage on the platform, to increase their yield. 

Through this merger, the two protocols will still remain independent, although there are many synergies that resemble a merger. This partnership would also see future releases, as Cream will be responsible for lending products. 

A lending platform about to be launched that was built by Yearn.finance, called Stable Credit, will be launched through Cream. Stable Credit is a zero-collateral protocol enabling more flexibility in lending. 

Although the blog post has explained many different synergies between the two protocols, the community has had concerns about not being consulted before a merger. Earlier this week, Yearn.finance and Pickle Finance had the DeFi industry’s first effective merger. 

Yearn.finance announced a partnership with Pickle Finance earlier this week to boost yield farming incentives, and to solve the issue of the exploit of which Pickle Finance faced in the loss of almost $20 million in Dai. 

According to Cronje, the partnership was to reduce work, increase specialization, and leverage shared expertise. The goal of the partnership is to boost returns for yield farmers with Pickle Finance strategies by enabling the earning of increased performance fees under the Yearn fee structure. 

Under the new Yearn.finance framework returns accrued from yield farming with Pickle will be boosted. Furthermore, Pickle will avail reward gauges that will enable Yearn vault depositors to earn additional rewards.

These mergers highlight that although there is a governance token for the Yearn.finance protocol, the YFI token, the core team has made the move to approve the recent partnerships. This might go to show that the community could be triggered in the future by the role of the governance token YFI, as the protocol may not be as decentralized as expected.