Is Yearn Finance Bringing Sushi Back to the Crypto Table?
We already highlighted Yearn Finance’s newly found business model when we compared its takeover path to that of Uber. It now seems that Andre Cronje, the so-called CEO of Yearn Finance, has an even bigger company in mind to merge with: Sushiswap is up next, and their own coin Sushi of course was the lingering scandal coin of the DeFi hype this summer. Will investors let Andre have this prize as well or is this a step too far? In a clearly marketing team directed message, the companies explained that this Yearn and Sushiswap partnership would:
Allow the two protocols to realize synergies between products and developers, bringing value to both products.
Yearn Finance (YFI), still relatively new to the blockchain and crypto world, made several acquisitions of rival companies in the past few months (Pickle Finance and Cream v2) as part of a newly found business strategy. Supporters seem to like what the Andre Cronje team is doing, as is clear from the price graph of the coin which is clearly lifting itself from the summer slump. Although Yearn retreated back to the $10k level during the autumn DeFi selloff, it has since gone to look for its all-time-high again and is currently trading at $25.7k.
Of course, this latest cooperation could spell trouble for Andre Cronje’s team as many are sure to have lost out money on the whole Sushi debacle. A few days after we warned about the possible over hyping of the DeFi system, Sushi spectacularly “crashed and burned”. Many analysts warned about the launch of possible shitcoins in the DeFi sphere and urged the world of crypto not to make the same mistake as in 2017-2018, during the ICO bull run.
Cream, Sushi and other foods
The name that was gathered for the so-called DeFi shitcoins was the food-coin debacle. With coins like Kimchi, Hotdog and others all following in Sushi’s footsteps, September turned out to be a month where fear reigned the world of crypto, a fear that the DeFi food-coin debacle would diminish the growing trust of institutions.
By October, when Square and PayPal stepped up to the plate and announced they were investing directly into the world of crypto, Bitcoin saw a steady rise from $10k to the $19k level and it has remained in the upper regions ever since.
Probably because of this, the team over at Yearn Finance decided that now was the time to revitalize the enormous potential that Sushiswap’s platform still have and therefore decided upon one more takeover, its biggest yet.
Of course Andre is starting to realize that the cryptosphere might have questions about this latest agreement.
He therefore chose to forgive and forget in a medium post, in what some interpret as a disclaimer against any future Sushiswap scandals. Andre stated:
I had been outspoken in the past about the things that Sushiswap did wrong, but I cannot overstate how much they have done right. In the past weeks of interacting with 0xMaki I have developed immense respect for their character, their capabilities, and their execution. Boring, has given me a similar experience, and shown me to be an incredibly strong, motivated, and talented developer, quickly catching mistakes that I did not notice. These two alone would be invaluable to have along for our mutual journey, yet the Sushiswap team is so much more and they will continue to grow.
We’ll be on the lookout to see how this plays out.