A new DeFi protocol called Pickle.Finance took over more than $ 347 million in locked-in assets just four days after launch.
DeFi projects with food-related names (hotdog, sushi, yum, etc.) have slowly taken over the cryptocurrency market over the past three months. Many of these projects suffer from controversial issues. For example, the SushiSwap protocol, a fork of the Uniswap exchange, was depleted of funds from its development fund by the main protocol developer (Chef Nomi), during which 13 million ethers left SushiSwap. Another example is the infamous Hotdog Kevin, who dropped 99.9 percent just hours after he was listed. These projects, with their rapid dumping and pumping, have made DeFi protocols infamous, but a closer look at the list of food-related projects reveals that not all of these protocols were.
On September 11, a new project called Pickle.Finance was launched for food-themed DeFi tokens. This project works like other popular DeFi protocols and rewards users with high interest rates and tokens. To date, the project has generated more than $ 347 million in lockout and one of its first liquidity pools with an annual interest rate of 4,500%. This project aims to stabilize the price for four of the most important stabilization-coins in the cryptocurrency sector and has grown rapidly into the thirteenth largest DeFi protocol in terms of value of locked assets. Demand for the project was also reflected in the platform's native ciphers (PICKLE), which rose rapidly from $ 4.41 on September 12 to $ 70.21 at the time of writing.
Oscillation of Stable Coins
The Pickle Finance protocol allows users to benefit from PICKLE, ether, and stabilized-coupled tokens to provide liquidity to DAI, USDC, USDT, and sUSD as a reward. The project is apparently inspired by the Rick and Morty cartoon and aims to correct for stabilization-coin fluctuations during 2020, which were often several percent higher than usual. Likewise, more rewards are given to low-volatile stable coins and less rewards to volatile stable coins, which motivates users to buy and sell them. This system tries to balance market conditions by reducing the volatility of stabilizers and thus put them on the right track through an incentive structure. On September 16, pJars introduced Pickle.Finance (formerly known as pVaults). According to Yield.Finance, the token uses the funds deposited to buy and sell between stablecoins and several other protocols to reward holders.
Pickle Jars may inflate the price of this token
The Pickle token performed well in its first week of trading, setting a record with almost $ 50 million in daily volume for the first days of launch. Like other surveillance tokens, the Pickle token can now be used to vote on cryptocurrency community proposals through a unique quadruple voting mechanism, which weakens whale control over most decentralized systems. This particular surveillance system has even attracted the attention of Vitalik Butrin, the founder of Atrium.
One of the challenges that many DeFi novices face is withdrawing funds from liquidity providers and sending them to interest farming projects. This is a fact and a challenge that Pickle Finance may have to face as farming pools evolve in the coming days. Adding rewards through pJars may have a positive effect on the price of this token and has been proven for models similar to projects such as Aave and Yield. In addition, these bonuses stem from the fees received for pJars (1.5% of it for buying or burning Pickle tokens), which reduces the token's overall supply and, in theory, contributes to its price stability.