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YFI founder on M&A and Cooperation: DeFi allows us to be both cooperative and symbiotic, while maintaining our individuality

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Three DeFi agreements were acquired in one week. Andre Cronje on the implications of mergers in the new Era financial markets.

原文标题：《 Merger, Acquisition, Partnership, & Collaboration nomenclature in the decentralized space 》

原文作者： Yearn.Finance （YFI）创始人 Andre Cronje

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Tangbeats, Nov 30, tangbeats.Finance founder Andre Cronje (AC) published a paper titled "Merger, Acquisition, Partnership, & AMP; Collaboration Nomenclature in the Decentralized Space" The m&a cooperation in DeFi field was discussed.

Recently, AC has rushed to merge part of DeFi with Yearn Finance. This article may explain why he did this and what impact it would have on the encryption market.

The following is the full text of Andre Cronje's article.

What do these terms mean in a decentralized, unincorporated world? What have we learned from our interactions so far?

Let's start with a standard definition;

Merger:To combine two things (esp a company) into one.

Buy:An asset or object purchased or acquired.

Joint Venture:A partnership consisting of two or more entities.

Collaboration:The act of working together to produce something.

Interestingly, they're all related to ownership to some extent. What does ownership mean in a decentralized ecosystem?

If we look at Ethereum, who owns it? Let's see who the participants were:

The miners(They decide whether or not to upgrade)

The developer(They build software for the miners.)

The ETH holders(Is a user-undriven selection of the system)

Vitalik(Definitely a thought leader)

Ethereum Foundation(They help fund the ecosystem, but how much say do they have?)

It's hard to determine who owns it, isn't it? But I'm inclined to say it's a combination of developers and miners. Now examine the relationship between Yearn Finance and Ethereum.

And forever.Finance was founded on Ethereum, so that means it's the culmination of two things. And forever has links with Ethereum, with which it produces something. Gone forever.Finance and Ethereum could be a partnership, partnership or, to a lesser extent, merger. Why the last one? It's because the developers of Ethereum didn't build it to promote Yearn, and the people who built it had no influence on the miners.

Now, let's look at the governance agreement. Governance can be seen as the miners who decide whether to upgrade the agreement. But what if there are no potential changes to the agreement?

Consider a recent merger case study

Pickle

The developers of pickand Yearn.Finance can match. Both teams are working on revenue strategies. Adjusting the same strategy often is simply repetitive. From the point of view of the integration of the development team, this is logical. Pickles core developers can focus on strategy, and Yearn Finance can provide additional security, peer review, and discussion. Development teams merged. We are now sharing the same group, consolidating the same discussion, and focusing on making this combined ecosystem stronger. While pickand Yearn Finance has remained independent, resources have been cemented.

It's a combination of talent.

Cream

Strong and highly unified coordination. High-yield agriculture and money markets work well together. Leverage can increase the liquidity mining output. Money markets provide leverage by nature. However, the difference between the two entities is usually visual. We have seen that money markets can be set up according to very different customer priorities. Systems such as Aave and Compound could be called the loan market, which focuses on providing loan products to end users. Look at dydx, they also lend money, but they do it for leverage, so even though they are a money market, the core interest is to use that market to trade. Synthetix can also be seen as a lending market, but its core driving force is synthetic assets. Alpha Homora is a lending market, but with a particular focus on leverage. However, all of these are lending markets.

While development teams do merge and leverage each other, it is best to classify them as two teams working together toward a common goal: agreement reserve, agreement to agreement reserve services, and fewer lending providers. This design facilitated additional funding for other protocols, such as Aave, Compound, Dydx, Synthetix, and Alpha Homora, without limiting their resources. This is a focus on capital efficiency, not traditional lending markets.

So let's categorize it as cooperation and partnership. Even the development teams merged.

Cover

The Cover agreement will be classified into four core areas of focus:

1. Core insurance products, fixed term insurance products denominated in stable currency can be used in a series of agreements containing variables.

2. Protocol prediction market, used to predict perceived risks that the protocol may be used to exploit.

3. Perpetual contracts (I like to call them lazy contracts) are insurance for users and agreements that only want to set aside reserves to hedge against risk.

4. Insurance as a service, providing any token for your ecosystem, allowing tokens to use their own tokens as catalysts to simulate products in 1 and 3.

When Yearn Finance provides security, review and audit access to all four projects, we were particularly interested in the collaboration between 3 and 4 because 4 allows YFI to become its own insurance ecosystem, and 3 allows vaults to access insurance services from proceeds without up-front user costs. He hedged his risks, though his returns were lower.

Therefore, like Cream cooperation, this approach is closer to the consistency of goals and results, sharing development resources.

conclusion

Having been fortunate enough to participate in these discussions, I have to say that I'm not really sure whether these are mergers, acquisitions, partnerships or collaborations. The simple answer is that each approach has a point: teams merge, protocols leverage each other, visions are aligned, and success is Shared by all team members. This is something new, and I don't think this model fits the way we were used to.Decentralized finance allows us to be both cooperative and symbiotic, while preserving our individuality.

I don't know what to call this operation or trend, but I'm definitely excited about it.