718
views

What is Pickle Finance and Why You Might Want a Bite of It

Pickle. Finance is the latest Decentralized Finance (DeFi) experiment in a series of food-named protocols that have seen a mercurial evolution shortly after their release.

We witness new DeFi protocols surfacing on a quickly-expanding market that has no peak insight every day. Most of them carry native tokens that see a thousandfold increase in value overnight. Some of them disappear in thin air just as quickly as they popped up. Others become money-engulfing assets that reach and maintain global popularity matching established cryptos like Bitcoin, Ethereum, or Ripple’s XRP.

Now, Pickle is less than a month old, and it already amassed more than $31 million in locked value. It saw impressive returns in its first week of trading, with approximately $50 million in daily volume, and it reached an all-time high of $85.24 on September 14.

This Pickle is one of the most appetizing projects on the wide table of food named DeFi protocols. But is it worth a bite? Let’s find out!

What is Pickle Finance?

According to its website, Pickle Finance is “an experiment using farming to bring stablecoins closer to their peg.”

The project emerged on September 11, 2020, on Ethereum, and it quickly increased in value and popularity to become among the Top-20 DeFi protocols on the market. Its presentation is rudimentary, and its site even more. Some may even take it as a joke thanks to its logo, none other than Pickle Rick from “Rick and Morty.”

Nevertheless, Pickle Finance has an honorable goal of bringing more stability to the stablecoin ecosystem.

In recent times, stablecoins like USDT and DAI have drifted slightly from their pegged fiat currencies. Limitations in monetary policies and market fluctuations have led to stablecoin users losing serious money in trading. Furthermore, the current DeFi boom and yield farming craze have forced farmers into buying and selling huge amounts of stablecoins in their bid of finding the best yield out there.

Pickle Finance comes with a solution to these issues. The protocol empowers farmers to earn interest from pumping more liquidity into the four most popular stablecoins: DAI, USDT, USDC, and sUSD.

How Pickle Finance Works?

The Pickle Finance protocol has a native token, called PICKLE. It uses it as an incentive together with vaults and governance to get stablecoins closer to their pegs.

The protocol works by assigning PICKLE tokens to Uniswap LPs of different stablecoin pools. This way, users are incentivized to move capital between various stablecoins.

Next, Pickle uses one of its other features called Pickle Jars, or pJars, to employ various active strategies like leveraging flash loans to stablecoins off their pegs.

Finally, the Pickle protocol uses PICKLEs as a form of governance on the platform.

The Uniswap LPs pools that receive freshly minted PICKLE tokens include:

  • DAI-ETH
  • USDC-ETH
  • USDT-ETH
  • sUSD-ETH

A pool where the stablecoin is above its peg will receive fewer PICKLEs, and vice-versa. This way, farmers will be more motivated to chase the best yield and have more control over the balancing process of stablecoins.

The initial distribution of PICKLEs is based on Curve.fi’s sUSD pool.

Pickle Finance Features

It may seem like a rushed project to some, but Pickle Finance shows that the developers spent considerable time building a solid set of features. The most important ones include:

Pickle Swap

Farmers can use this feature to change their LP position between different stablecoin pools to support off-peg stablecoins to return to their original peg quicker.

Pickle Jars (pJars)

This feature was initially called Pickle Vaults (pVaults), but the developers renamed it a few days later to ensure its kinship to the Pickle brand.

Pickle Jars is very similar to Yield. Finance’s yVaults. It uses PICKLE deposits to employ two vault strategies that help incentivize farmers and bring stablecoins closer to their pegs:

  1. LPs can deposit sCRV to earn CRV tokens and then sell the CRV tokens for the least supplied stablecoin to earn additional sCRV
  2. LPs can use flash loans to leverage up and arbitrage between stablecoin while producing vault owners’ returns.

Governance on the Pickle Protocol

PICKLE holders have voting rights on the Pickle platform. They can vote on community proposals using a unique quadratic voting mechanism that reduces the control that whales have over most decentralized governance systems.

The Development Fund

The protocol saves 2% of each PICKLE distribution from fueling its development and ensuring that the team can focus on it full-time.

The PICKLE Token

Pickle Finance launched its PICKLE token on September 11, 2020, and it saw a mind-blowing 1,000% increase in value within its first 24 hours of life.

A few days later, the community decided through a governance vote to implement a halving schedule for the first month and then distribute 1 PICKLE per block thereafter. Future distributions will be done via a timelock contract, with input from the governance community.

At the time of this writing, one PICKLE was trading for $38.21, and the token was registering a 24-hour trading volume of $12 million on average.

Why You Might Want a Bite of the Pickle

Most DeFi protocols come with similar risks for their users. One of them is the possibility that the liquidity boosters will suddenly withdraw all their funds before investing it into a more profitable farming project.

Pickle Finance is not impervious to this risk even more as its high Annual Percentage Yield (APY) pools are set to come of age very soon.

However, the project’s team seems to be dedicated more to its development than to cashing out. The pJars feature and the rewards that may derive from it may transform Pickle into a solid protocol for yield farming similar to industry-established names like Aave and Yield.Finance.

Bitcoin live price
Btc
Bitcoin
$19.040,04
price
1.95763%
price change
BUY NOW

For now, Pickle Finance has no audits. Still, it is planning to contract one together to analyze a more equitable inflation schedule and build a more comprehensive governance portal, among other UI/UX improvements.

Stay up to date with our latest articles

More posts

indu4.0 – The Digital Marketplace for the Manufacturing Industry

indu4.0 is a digital B2B marketplace for the manufacturing industry, aiming to make the bridge between supply and demand faster, more efficient, and cost-effective. The company behind it, Indu4.0 AG, operates from Lucerne, Switzerland. It has already succeeded in integrating numerous complex industrial products and services with a sophisticated filter system in a user-friendly platform. This indu4.0 review looks closely at one of the most ambitious projects seeking to establish a blockchain presence for the behemoth-sized manufacturing industry. Read on…

SpurDex – A Cross-Chain DEX Platform for Hassle-Free Trading

SpurDex is a cross-chain DEX platform that supports the hassle-free trading of digital assets. The platform aims to provide a decentralized, secure, and user-friendly experience for all its users. SpurDex aspires to establish a safe and secure environment for digital asset trading. What Is SpurDex? SpurDex is an easy-to-use cross-chain DEX platform allowing you to trade digital assets in a new manner. It utilizes smart contracts to facilitate the exchange of tokens between different chains. SpurDex wants to provide the…

Hami Network – The Next Level Launchpad for Investors and Project Owners

Hami Network, an all-in-one cryptocurrency platform, revealed its new investor-friendly launchpad helping projects gain more traction from their first day in the cryptosphere. Additionally, the project started the Seeding Round A for its HAMI token on August 19, ending on September 8. Investors can board the initiative or join the Seeding Round B on PinkSale from September 1 to September 14. This short Hami Network review looks closely at the project's new launchpad and features. Read on to learn more…

BC.Game – A Complete Casino and Sportsbook Experience

BC.Game is a crypto casino offering the widest variety of crypto deposits and withdrawals. The website features over 6,000 games, including BC Originals and house games. Most importantly, it operates as a casino and a sports book allowing users to play with crypto and fiat currencies. This BC.Game review dives deep into one of the most popular cryptocurrency casinos. Read more about its features, games, supported currencies, and payment methods! BC.Game in a Nutshell BC.Game launched in 2017 as a…

ZUNAVERSE NFT Marketplace – Discover, Collect and Sell NFTs

ZUNAVERSE is an NFT-centered platform on BNB Chain aiming to make non-fungible tokens (NFTs) more accessible to everyone. The project is developing rapidly and incorporating an NFT marketplace, a proprietary token (ZUNA), and a brand new NFT collection, the ZunaNauts. This short ZUNAVERSE review looks closely at one of the latest NFT marketplaces to enter the market. Read on to discover its many features and plans! ZUNAVERSE in a Nutshell ZUNAVERSE plans to rival the industry-leading NFT marketplace. To this…

LykaCoin – All-in-One Blockchain Ecosystem

LykaCoin is a multi-chain blockchain ecosystem similar to Polkadot and Avalanche but promising to be more competitive. Its goal is to add innovations, progressive views, and a different vision to the newly-built meta universe with the projects it will do and develop. Notably, it aims to attract them with zero gas fees and potentially unprecedented scalability. This LykaCoin review looks closer at one of the fastest developing blockchain projects in the industry. Read on to discover its features, tokenomics, and…

Decentraland – A Virtual Reality Platform Unleashing the Blockchain Potential

Since its inception, virtual reality has been a phenomenon. People have been fascinated by the idea of stepping into another world that humankind created. With Decentraland, this fascination has become a reality.  Decentraland is a popular virtual reality platform that allows users to create and experience anything they can imagine. Decentraland is also a cryptocurrency platform. Within the Decentraland ecosystem, users may buy goods, services, and real estate with the MANA token. The MANA token enables the project's founders to…

Chain Pet – A Play-to-Earn Ecosystem for an Enhanced Crypto Experience

Blockchain gaming is starting to take off, and Chain Pet is one of the games leading the charge. In this review, we'll look at Chain Pet's main features and how it sets itself apart from the competition. Chain Pet is a play-to-earn ecosystem that rewards players for their contributions. By upgrading, breeding, and combating their elves, players may construct their world. The elves obtained are all personal assets, so finding a partner is essential to help you get started. One…

LoserChick – A GameFi Crypto Platform Relying on Staking

LoserChick is a fun and addictive new game that allows players to catch and smash eggs for NFTs. In addition to providing many ways for players to earn, LoserChick also offers lower gas fees and higher transaction speeds.  Because of its relationship with Polygon, it's an excellent option for gamers seeking to spice up their day a little. This review will analyze LoserChick in detail, so be sure to check it out if you're interested in learning more. What is…

DeNations – A Global Play-to-Earn Crypto Experience

DeNations is a popular platform for gamers who want to get involved in the crypto market. Users can expand their nations, build civilizations, and earn rewards. The gaming industry is growing rapidly, and DeNations provides an excellent opportunity for gamers to get involved.  This review will analyze the main features of DeNations that appeal to crypto investors and gamers. What is DeNations? For those who like to earn prizes while having fun, DeNations can be an appealing platform. Each nation…