The DeFi space is a very competitive one, indeed, with more protocols entering the arena than there are leaving. As one would imagine, the space only has a finite amount of liquidity to go around all these projects, giving smaller-time protocols very little choice other than to make mergers with each other to survive.
DFI Money And SakeSwap Teaming UP
SakeSwap and DFI Money stand as one of these mergers. In a bid to pool resources and survive in the competitive space, the two protocols have merged.
The move itself was announced after the proper procedures were done: After a governance vote. The two protocols will have their respective user interfaces fused together into one platform, with SakeSwap further providing DFI with various premium resources. Alongside this, SakeSwap plans to launch a liquidity crowdfunding platform by the name of ILO, alongside a general increase in more assets to be traded on the platform at large.
Big Plans For The Future
SakeSwap boasts the SAKE token as its governance token, which provides voting rights and liquidity rewards to its platform’s users. With this new merger, DFI Money will be capable of partaking in the governance of SakeSwap, as well.
The announcement detailed how the upcoming Initial Liquidity Offering, or ILO, will also boast an array of new assets for its users to enjoy.
Another big thing in the pipeline for the two protocols is the incorporation of derivatives and synthetic assets. Another big goal is the incorporation of a YFII DeFi Fund yet to be established. The users of both YFII and SAKE will be allowed more opportunities to take part in various early-stage DeFi projects.
A Bit Of History
Sakeswap itself is quite an interesting protocol. It’s a fork of SushiSwap, which itself is a fork of Uniswap. Because it’s a fork of a fork, Sakeswap boasts a number of elements from both, with its big claim being an improvement to the automated market maker’s design when it comes to contributor rewards and price curves.
As for DFI Money, that protocol is a clone as well. It came out of the woodworks when the YIP-8 proposal was put forward by the original community of Yearn Finance in order to decrease the available supply. The YFII token stands as the governance token of DFI.Money, operating in a way similar to any other DeFi protocol’s governance token.
Time will tell how successful this merger will be, but the prognosis looks promising indeed.