DeFi's first M&A deal? Yearn.Finance and Pickle Finance are set to merge

Quick Take

  • DeFi protocols Yearn.Finance and Pickle Finance are set to merge.
  • The actual merger would occur when Yearn V2 launches, which is currently under development.

Decentralized finance (DeFi) protocols Yearn.Finance and Pickle Finance are set to merge in what appears to be the first M&A agreement of the DeFi space.

Announcing the merger on Tuesday, both teams behind the protocols said they would work together to leverage shared expertise and increase specialization. The actual merger would occur when the second version of Yearn launches, which is currently under development. The development comes days after Pickle.Finance was exploited for nearly $20 million worth of DAI.

After the Yearn's V2 release, Pickle jars and Yearn's v2 vaults would merge. Technically, Pickle jars are a fork of Yearn's yVaults. "Pickle Jars will be deployed as Yearn vaults, using the forthcoming v2 design. A more detailed migration plan to follow," per the announcement.

When the merger activates, two new tokens would also be launched — DILL and CORNICHON. Pickle tokens would need to be locked to earn DILL.

"Locking Pickle yields DILL (Pickle tokens that are placed in time locked escrow). The longer time period the Pickle is locked for, the more DILLs are received," according to the announcement. "The minimum locking period is 1 week and the maximum period is 4 years."

As for CORNICHON, the token would be distributed to victims