Yearn and Sushiswap to collaborate for Deriswap launch

Andre Cronje's Yearn Finance will form a strategic partnership with Sushiswap which covers Deriswap's strategy deployment.

By · Dec 3, 2020 . 5min read

Yearn and Sushiswap collaborate for Deriswap

Andre Cronje has announced that Yearn will form a strategic partnership with Sushiswap which covers Deriswap’s development and other core strategy deployment.

In a medium announcement, the solidity whiz and inventor of Yearn protocol spelt out what details of the partnership. Specifically, it covers many of the synergies to be formed between the two protocols will be ratified via a governance voting.

Cronje conceived Deriswap, a protocol which combines different segments of DeFi such as swaps, options, and loans into one platform. With the strategic partnership, Sushiwap will now complete and Deriswap in collaboration with Yearn.

And as a result of the partnership, Yearn strategies will begin to use Sushiswap. Yearn will also help create Sushi vaults. This unlocks the possibility for the DeFi community to be able to earn SUSHI-ETH-YFI-wBTC.

For cross-protocol liquidity, Yearn will launch Sushiswap money market. This makes Sushi LP eligible as collateral on the platform.

Yearn and Sushiswap governance proposals

Cronje also shared his admiration for the Sushiswap’s core dev especially 0xMaki who worked with Chef Nomi at the initial Sushiswap launch. Consequently, 0xMaki will take charge and bring his wealth of experience to the AMM arm of yEarn.

Since Sushiswap and Yearn are open protocols which the communities govern, the community will have to vote on some of the strategic collaboration between Yearn and Sushiswap. For instance, Cronje stated that Yearn would supply 0.2x allocations for pairs that need to be incentives. Additionally, on governance proposals, Yearn will participate in Sushi governance and add some SUSHI to its treasury.

Consequently, Sushiswap will also participate and add to its YFI to its treasury. Grants for Sushi contributors will also now be paid via yGift.

Asides the Yearn and Sushiswap integration, Cronje also highlighted some of the other DeFi protocols implementations. Some of these are Keep3r, Cover and Cream protocols.

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