Into the Brine Vol. 4 — Yearn Collab and Smart Treasury
Pickle Finance has been a bit of a roller coaster ride recently, to say the least. In this issue, we cover:
- The Yearn Collaboration 🤝
- Our Smart Treasury Implementation 💵
Yearn Collaboration 🤝
There is a lot to be excited about for this upcoming collaboration. Andre’s post outlines the synergies well. However, many are understandably confused about the finer details. Here, we try to address some of the questions which have been raised.
- When Yearn’s v2 Vaults launch, the current PickleJars will hook into these the v2 Vaults.
- Until then, the existing PickleJars will continue to operate and accept deposits.
- Following the migration, Pickle will be accepting yToken deposits so users can earn PICKLEs on top of their yVault APYs.
DILL (PICKLE locking)
- By locking PICKLE for set maturity dates, users get 1) voting power in Pickle governance, 2) boosted rewards, and 3) a portion of protocol profits.
- The boosted rewards are in the form of increased PICKLE rewards, and NOT in the form of underlying Jar/Vault returns.
- The mechanics of DILL largely mirror those of veCRV from Curve.fi.
- DILL boosts to be released SOON™.
- Details of the revenue model going forward are still being hashed out.
- Following this, how $CORN is to be funded can be discussed by the community.
Smart Treasury 💵
We’re now in the final stages of pursuing an initiative that has gained a lot of traction on our Forums — the Smart Treasury. The idea was inspired by an article by Placeholder VC proposing a method to grow token value by reducing supply as income grows.
The Smart Treasury provides three main functions:
- Automatic buyback machine — fees generated from the protocol are used to buy back PICKLEs, which reduces the circulating supply.
- Liquidity provider — the Smart Treasury serves as a liquidity provider and can generate trading fees for the protocol.
- Token issuance pool — the Smart Treasury facilitates the secondary issuance of PICKLEs (separate from our Farms) for things such as grants.
Why is this Important?
- With the Smart Treasury, all PICKLE holders will benefit directly from the protocol’s profitability, rather than some directly (e.g. through becoming an LP & staking) and others indirectly.
- The Smart Treasury provides another source of protocol revenue in the form of trading fees.
- The Smart Treasury receives all protocol fees to thus maximize buy pressure (with the exception of revenue diverted to DILL holders).
To our knowledge, we would be the first project to implement a Smart Treasury — allowing Pickle Finance to pioneer innovative incentive models in DeFi.
A Balancer smart pool has been created in which only whitelisted addresses can add or remove liquidity in the manner described above. Following are the addresses of the Balancer Pool and the Pickle Smart Treasury Token. The composition is 80% PICKLE — 20% ETH.
There are a few final issues we are working out with the Balancer team before this becomes fully operational. Stay tuned for updates!
If you have any questions or comments, we invite you to come to our Discord!
Contributors to Pickle have made reasonable efforts at ensuring the integrity of the protocol including tests. Pickle is completely valueless and has 0 financial value. Anyone who chooses to engage with these contracts, including the Pickle token contract and the staking contracts, are doing so at their own risk. You should perform your own due diligence.