Yearn Finance announces merger with Cover Protocol
Yearn Finance has been actively integrating with multiple DeFi protocols of late, and Cover Protocol is the latest addition to this chain of partnerships.
Yearn Founder, Andre Cronje, announced the Yearn and Cover merger earlier today, stating that Cover will become the backstop coverage provider for the Yearn product suite, as well as for DeFi as a whole.
The price of $COVER spiked minutes after the news of the merger from $280 to $419.
Yearn developers have reportedly been working with Cover Protocol developers since inception, so this collaboration came naturally for both parties.
The synergies from this merger will enable Cover to expand into a new cover money market, making the CLAIM token collateral and a borrowable asset.
Meanwhile, Yearn will get coverage for vaults and will be able to offer users a reduced risk product.
Through the Yearn Vault integration, Yearn LP’s will also be covered by default through Cover’s perpetual products.
This week alone, Yearn has announced multiple partnerships. Yearn has partnered with Cream Finance and will launch its zero collateral lending platform, Stable Credit, using Cream. Earlier this week, Yearn Finance announced its partnership with Pickle Finance in an attempt to boost yield farming incentives, and resolve some of the issues relating to the recent exploit Pickle Finance faced recently.
Yearn’s token, YFI recently witnessed some fluctuating price action recently amidst the BTC selloff. YFI is currently trading around $23,300 up from $19,900 only 24 hours ago, a daily low level that was observed due to selling pressure caused by the declines seen in both BTC and ETH.