DeFi Digest: Yearn.Finance's mergers

Over the past week, we saw a slew of merger-like activity announced by Yearn.Finance (Yearn) starting with Pickle Finance and ending, at the time of this writing, with SushiSwap. Of course, unlike the typical mergers and acquisitions seen in traditional markets, there are no purchases of assets and offers to the acquiree. Instead, Yearn’s actions mimic more of a collaborative development effort commonly seen in open-source development. There is a single theme, however, that we can point to from these collaborations. One that is frequently mentioned by the protocol's founder Andre Cronje: capital efficiency.

Capital efficiency is a central theme parroted by Cronje in his many Medium posts. It is also one of the main reasons why Yearn launched in the first place. Cronje has stated in past interviews that he was looking for ways to deploy capital efficiently and collect yields relative to the cost of these transactions on Ethereum, which lead to the launch of Yearn. Capital efficiency is also an important theme as Yearn prepares for the V2 launch of its protocol, where multiple new strategies will be deployed, including hedge contracts, which we’ve previously written about.