In an effort to collaborate resources in the rapidly growing DeFi ecosystem, DFI Money has incorporated the SakeSwap exchange.
Competition is heating up among the growing number of DeFi protocols as there is only so much liquidity to go around at the moment. Mergers between smaller protocols will be the only way many of them can survive.
The move was announced following a governance vote and will fuse both protocol’s user interfaces into one platform. SakeSwap will also provide DFI with premium developer resources and launch more assets in addition to a liquidity crowdfunding platform called an ILO.
DeFi Forces Unite
SakeSwap is a fork of a fork. It takes in elements of both Uniswap and SushiSwap and improves the design of the automated market maker in terms of price curves and contributor rewards.
Just like the protocols it was spawned from, SakeSwap has its own governance token. SAKE is used to provide liquidity rewards and voting rights. The merger will allow DFI Money to participate in SakeSwap’s governance.
The announcement added that the Initial Liquidity Offering (ILO) will include an array of new assets;
“After the merger, YFII plays to the community’s strengths and will introduce Polkadot, Near, Conflux, Flow, Heco, BSC and OKChain assets on SakeSwap for initial issuance and liquidity crowdfunding.”
Synthetic asset trading and derivatives are also in the pipeline and a YFII DeFi Fund will be established. SAKE and YFII community users will get more opportunities to participate in DeFi projects early and share the dividends of cooperating projects.
DFI Money is also a clone, emerging from an implementation of the YIP-8 proposal that was put forward by members of the original Yearn Finance community to decrease the supply. YFII is DFI.Money’s governance token and it operates in a similar fashion to most DeFi tokens.
YFII Flat, SAKE Surges
YFII prices have remained flat over the past 24 hours, trading at $1,835 at the time of press. The token is up 14% since the beginning of 2021 but has retreated from its all-time high of over $8,500 during the DeFi boom in early September.
Liquidity on the platform has also slumped from a peak of $56 million in mid-October to just $1.4 million today.
SAKE prices conversely have surged over 165% on the day to reach $0.15. However, it too has dumped since the protocol was launched and the token spiked to $2 in mid-September 2020.