DeFi’s food-related projects have slowly taken over cryptocurrencies in the last quarter, with many of these projects suffering controversial issues such as the Uniswap fork, the SushiSwap vampire attack and the $ 13 million Ether (ETH) dump by lead developer Chef Nomi .
Then there’s the infamous HotDog DeFi meme coin, which discards 99.9% of the hours after the list. These fast pump and disposal projects have the ability to give DeFi a bad name, but a closer look at the list of themed food projects reveals that not all proposals have rotted.
On September 11, a new project called Pickle Finance emerged from a closet full of themed DeFi food-themed symbols. The project works like other popular DeFi protocols, which reward users who provide liquidity with great interest and additional rewards for symbols.
To date, the project has accumulated over $ 347 million in total locked value and one of the major liquidity pools offers up to 4,500% APY.
The project aims to bring price stability to the four most stable coins in the crypto sector and has risen rapidly to become the 1
Demand for the project is also reflected in the platform’s native token (PICKLE), which rose rapidly from $ 4.41 on September 12 to $ 70.21 at the time of writing.
“Excluding the bad, the peg the good”
The Pickle Finance protocol allows users to earn interest and PICKLE, Ether and stablecoin pairs as a reward for providing liquidity for DAI, USDC, USDT and sUSD. As it does so, the seemingly Rick-and-Morty-inspired project aims to correct the fixation of these stable coins, which have often fluctuated a few percentage points above their peg in 2020.
In this way, more prizes are given to stable coins under the pegs and less to stable coins above the pegs, encouraging consumers to buy and bet the former and sell the latter. This system tries to balance the market conditions, which push the lock of stable coins out of their main asset, thus directing them in the right direction through a stimulating structure.
On September 16, Pickle.Finance also introduced pJars (formerly known as pVaults). Based on Yield.Finance’s yVaults, pJars will use deposited funds to arbitrage between stable coins and use several protocols to bring rewards to tokens holders and further push stable coins to fix them.
Pickled pickles can pump up the price of the symbol
In the first week of trading, the Pickle token recorded a great return, with daily volumes of about $ 50 million registered in the days after the launch.
Like other management symbols, the Pickle token can now be used to vote on community proposals through a unique square voting mechanism that reduces the control that whales have over most decentralized management systems. The unusual management system even caught the attention of Vitalik Buterin, founder of Ethereum.
One challenge facing many of DeFi’s shots is for liquidity providers to withdraw all their funds and move on to the next lucrative agricultural project once the high APY rewards on their current plantation are over. This is a reality and a challenge that Pickle Finance may have to contend with, as APY’s high pools are set to “mature” in the coming days.
It is possible that the addition of prizes through pJars has a positive impact on the price of the symbol and similar models have proven effective in projects such as Aave and Yield.Finance.
In addition, the prizes come from fees applied to pJars, 1.5% of which will be used to purchase Pickle tokens and to burn them. This reduces the overall supply of symbols and in theory should help stabilize the price of pickles.