The developers at Yearn have worked with the developers at Cover-Protocol from the start, so this partnership is natural for both of them.
Yearn founder Andre Cronje announced the partnership between Yearn and Cover on Saturday, stating that Cover will become the backstop coverage provider for the Yearn range of products as well as DeFi as a whole.
The price of $ COVER soared from $ 280 to $ 419 minutes after the partnership was announced. The synergies from this partnership will allow Cover to expand into a new market for cover funds, making the CLAIM a symbolic security and a borrowable asset.
In the meantime, Yearn will have coverage for Vaults and be able to offer a reduced risk product to users. With the integration of Yearn Vault, Yearn LPs will also be covered by Cover’s products with an unlimited term by default.
Yearn Finance has announced another partnership
This isn’t the only partnership Yearn Finance has formed this week. Andre Cronje recently released details of an upcoming integration with Cream, a lending protocol in the DeFi ecosystem. At the start of Cream V2, Cronje explains the integration of the two protocols in a blog post.
Yearn.finance users could use their stake in an income-growing strategy fund as collateral to borrow for the Cream Protocol. Users would also have access to leverage on the platform to increase their earnings.
This merger keeps the two protocols independent, although there are many synergies that resemble a merger. This partnership would also apply to future versions, as Cream will be responsible for lending products.
A credit platform set up by Yearn.finance and soon to be launched will be launched by Cream under the name Stable Credit. Stable Credit is a zero collateral protocol that allows more flexibility in lending.
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