Who will be the next project to be merged by AC?

After announcing that he would no longer be involved in any project, Andre Cronje (AC), founder of Yearn Finance, continued to be active in DeFi and began to forge his own DeFi territory through a merger.

AC moved fast, and in less than a month, as many as seven DeFi projects were acquired, including Derivative Hegic, machine gun pool Pickle, lending platform Cream, governance platform Powerpool, insurance product Cover Protocol, Polka DeFi governance project Akropolis, exchange platform Sushiswap, and the recently announced collaboration between KP3R and ChainLink. There seems to be a standard process in place, even with the content format of every AC tweet.

Similarly, each tweet will bring exaggerated increase in the secondary market for its protagonist. PICKLE with an increase of 80%, CREAM with a rise of 70% and only 30% May have been the worst performance of SUSHI. The letter AC is becoming a concept, and many people are betting on other DeFi projects to ride on the "AC concept" train.

So, who's next?

AC next potential option

Image credit: COIN98

Comb again AC current "merge" map, found an interesting phenomenon, in the field of machine guns pool Cream in the field of Pickle, lending, insurance Cover, as well as in the field of general exchange Sushiswap are not in their respective fields in the field of "eldest brother", while the so-called "merge" does not need to vote through the community chain, but not AC selection and Compound, the Nexus Mutual cooperate and Uniswap.

By this logic, let's look at what's missing from the AC empire, and which item will AC pick? .

Stable currency exchange

Stabilized-currency exchange has always been a crucial link in the DeFi space. Stabilized-currency exclusive exchange products allow users to enjoy lower slippage points and lower transaction costs compared to ordinary universal exchange products like Uniswap and Sushiswap.

So what other events are in the stable currency exchange track besides Curve?

Picture Source: Defipulse

Perhaps the first thing that comes to mind is the bifurcated project Swerve for Curve. Swerve's Swerve idea of no private placement and no pre-dig is also in line with THE COMMUNITY idea of AC. Curve ranks 6th in the total locked warehouse with usd 918 million, while Swerve is only USD 28 million. It can be seen that Swerve is more likely to be supported by AC than Curve.

Another possible option is mStable. Although it initially secured an investment from FTX's parent company, Alameda Research, it was later revealed that its share of private scrip was suspected to have been unlocked early, eventually causing its SCRIp MTA to plummet by 40%. Meanwhile, mStable has its own stable currency mUSD, which may help the future development of yEarn ecology to some extent.

Synthesis of assets

If you want to bring more physical assets into the cryptographic world, using synthetic assets is the most efficient approach.

Synthetic assets are one of the most difficult pieces to design in DeFi, and unlike the diversification of decentralized trading platforms, lending platforms and converged income platforms, there are not many competing projects in this part.

The first thing that comes to mind in the synthetic asset space is Synthetix, an old-line DeFi asset derivative protocol that allows you to trade large amounts of synthetic assets directly at current prices without any slippage on the Synthetix platform, but only with sUSD, which in turn comes from SNX collateral. SUSD is also one of the most important stabilisers in DeFi today.

As early as October 21, AC had participated in a conference call with the Synthetix team to discuss KP3R issues.

In addition to Synthetix, the synthetic asset area also has UMA. Today UMA's lock-up volume remains around $45 million, with a market value of $430 million. UMA has received investments from Placeholder, Dragonfly, and Coinbase. Users can use UMA composite Asset creator to create composite assets on the chain to track the price of any real-world asset. Contract templates could use price indices outside the Ethereum blockchain, and financial contracts would require deposits of collateral, or "margin". The difference with Synthetix is that collateral and debt are isolated in UMA, which reduces systemic risk, but with it comes a reduction in liquidity.

Synthetix and UMA have grown to some extent, but they might be AC's first choice if he is willing to move into the field.

The Midas touch turns gold

Although AC has recently been highly productive and has taken his YFI legion "on a rampup," there are some problems to be recognized. First of all, the so-called "merger" was not decided by the community vote. Considering that all the projects merged by AC are highly community-based, is it against the concept of community autonomy for developers to "merge" with YFI without the consent of the community?

Secondly, it also needs time to verify whether many mergers can truly achieve the purpose of AC resource integration and division of labor cooperation.

AC suggested in a Merger, Acquisition, Partnership, & AMP; Collaboration Nomenclature in the Decentralized Space that the company intends to "merge" pickles, Cream and Cover. At the end of the article, AC says he doesn't know if the relationship with the project is beneficial or beneficial. The synergy between teams and agreements may not exist in traditional industries.

In a traditional market, after an acquisition, only one entity can continue to operate. In an encrypted world, if two protocols do merge, how can two separate governance tokens coexist? Rhythm Research institute will discuss in detail "what is the real encryption merger and acquisition" at a later stage.

Rhythmical BlockBeats reminds investors to pay attention to risks and operate with caution. This article does not constitute any investment advice.

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