Yearn creator Andre Cronje released descriptions of another forthcoming integration with Cream Finance, a lending protocol comparable to Compound and Aave, two days after Yearn Finance (YFI) and Pickle Finance joined hands in DeFi’s first successful merger.
Published on Thursday, the blog post explains how Yearn plans on integrating Cream V2. The teams would combine development forces and implement several symbiotic relationships between the two protocols.
We are pleased to announce that Yearn and @CreamdotFinance developers have joined resources to launch C.R.E.A.M v2.
C.R.E.A.M v2 will become the launchpad for our upcoming StableCredit release, while also unlocking other synergies.
More details below. https://t.co/gh26CUWmpP
— yearn.finance (@iearnfinance) November 26, 2020
Users of Yearn would be able to position their vault tokens as leverage to invest on the Cream platform, their share in a yield farming strategy fund. In addition, users would be able to access yield farming strategies, theoretically growing their investment on the network.
The cooperation focuses on Cream’s specialization in items of lending. Secure Credit will be introduced by Cream, an upcoming lending service developed by Yearn. The zero-collateral protocol will allow for versatility in financing.
However, Cream’s governance and token economics will stay intact, as with Pickle Finance. The two protocols will stay relatively distinct, with synergies more akin to a partnership rather than a direct merger.
“Synergies” of the mMerger include:
Cream & Yearn merge development resources
Cream & Yearn TVL increases
Yearn vault shares serve as collateral in Cream
Yearn vault strategies get access to leverage through Cream
Cream specializes in lending-related products
Cream becomes the launchpad for Stable Credit
Yearn & Cream launch a new 0 collateral protocol credit solution
Pair lending 🍨
In a conversation with Cointelegraph, he explained that these types of decisions are likely to come under the umbrella of one of the decision-making powers that YFI holders granted to the core team in August, “facilitating business development and integration.”
So far the Yearn group has replied favorably to the integration of Cream, but most have yet to process the announcement.
Although their powers to accept alliances and mergers appear to be beyond the core team, these acts may provoke further consideration of the position of the YFI token holders in the Yearn ecosystem.
What is Cream Finance?
C.R.E.A.M. Finance is an agnostic, open peer to peer lending network built on a Compound Finance fork blockchain. C.R.E.A.M. bridges liquidity through underserved assets by providing these underserved assets with algorithmic money markets.
In order to borrow all other supported assets, users can supply any supported assets and use these supplied assets as leverage. C.R.E.A.M. has been introduced on Ethereum, and the Binance Smart Chain will soon be available.
The focus of C.R.E.A.M. is to list tokens such as stablecoins, (USDT, USDC, BUSD, yCRV, yyCRV, etc.), governance tokens (COMP, BAL, YFI, LEND, CRV, CREAM, MTA, SUSHI), and others such as ETH, Connect, and renBTC that are applicable and essential to the DeFi ecosystem.
At a later date, specifics of how management will function with CREAM will be released.