What is Pickle Finance? New DeFi Protocol Stabilizes Stablecoins with the Farmers Collective

2020-09-23 09:50:00 · 2063 views · 3 min read

 

You might feel it’s out of time to talk about the food DeFi. However, launched on 11th Sept, new DeFi protocol Pickle Finance TVL exceed $347M in 4 days.

 

$PICKLE token also outstands from those food-themed DeFi tokens. The price exploded from a low of $4.41 on September 12th to its ATH of $85.24 on September 14th. PICKLE price also shows a correlation with its transactions.

 


(The blackline shows the token price. Price indicator: https://www.dapp.com/app/pickle-finance)

 

 


What is Pickle Finance? How to farm $PICKLE?

 

Pickle Finance is an experimental DeFi protocol. The project works like other popular DeFi protocols that reward users who provide liquidity with high interest and additional token rewards.

 

 

What’s different is that, this project aims to bring price stability to stablecoins by using farming incentives, vaults, and governance: $PICKLE tokens are minted and distributed to Uniswap LPs of the DAI-ETH, USDC-ETH, USDT-ETH, sUSD-ETH pools. As so, more rewards are given to below-peg stablecoins and less to above-peg stablecoins, which encourages users to buy and stake the former, and to sell the latter.

 

 


“Off-peg bad. On-peg good”

 

Pickle Finance also deployed a new “pJar”. It introduces a way to stake $PICKLE and earn profits from flash loan arbitrage opportunities on stablecoins trading off their peg. 

 

 

According to the team, the pJar code is not audited, and much of the implementation is taken from Yearn‘s yVaults. Here’s how it works:

  • LPs deposit Asset into a pJar and receive pAsset;

  • Asset is deployed into an alpha-seeking strategy to generate returns;

  • Returns are distributed back to the pool, causing an appreciation in pAsset while also supporting governance and PICKLE holders through fees.

 

 

At the time of writing, the pJar with the largest TVL has over $56M locked. And its total transaction volume is over $63.7M. You can deposit UNIV2 USDT/ETH LP to earn estimated 40.56% APY.

 

 

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