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:

  • 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
price change

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

Volt Inu (VOLT) – Providing Passive Rewards for an Entire Army of Users

Volt Inu (VOLT) is a hyper-deflationary token seeking to help users diversify their investments across several asset types. Its goal is to build a loyal community, the VOLTARMY, whose members will have access to a growing ecosystem of assets and products, including NFTs, reflections, merchandise, and a P2E game. The meme-coin trend produced several projects with varying degrees of success and popularity in recent years. For instance, some coins like Shiba Inu made it into the top-10 cryptos by market…

HyperEarn – Encouraging an Active Lifestyle through Blockchain Technology

You'll be able to enter the latest trendy movement, "Move2Earn," using the HyperEarn token. There are many ways to get money with HyperEarn. You may run or sleep or even watch advertising to collect rewards.  With this quick introduction on our minds, let's get right into the core of today's review. We will treat HyperEarn neutrally in the article, and we urge you to do your own research before investing. A Closer Look into HyperEarn’s Ecosystem The HyperEarn platform relies…

Viubank: Earn Interest with Highest Crypto APY Through Fixed Deposit Receipt

An innovative new financial service called Viubank offers customers a way to earn interest on their long-term savings accounts. The concept depends on the cooperation with ELG bank, which brings together traditional and crypto-based financial expertise. About ViuBank Viubank is an innovative banking initiative promising simple access to fixed deposits that pay set interest rates. Depending on your preference, you can get daily, weekly, or monthly benefits. Thanks to its Vanuatu banking license, every depositor can open an account on…

RodeoCoin – Supporting the Western Lifestyle through Crypto

RodeoCoin is a hyper-deflationary token running on Binance Smart Chain seeking to reward its active users with BUSD reflection rewards. The project’s ultimate goal is to build a Community Wallet supporting the western lifestyle and community-oriented initiatives, including promoting talents in art, sports, and music. This short RodeoCoin review looks closely at one of the most recent projects to surface in the market. Read on to discover its features, tokenomics, and roadmap! What is RodeoCoin? RodeoCoin evolved from a group…

Shazu – Channeling the Ninja Abilities within NFT Collectors and Crypto Enthusiasts

Shazu is a community-driven project featuring a deflationary token, SHAZU, and a collection of unique Ninja NFTs. Its goal is to help users increase their financial freedom through reflection rewards, staking opportunities, and digital collectibles. This short Shazu review looks closely at one of the latest projects to surface in the cryptosphere. What is Shazu? Shazu is a project seeking to grow through its community while rewarding its members at the same time. It features a deflationary token on the…

WinWinCoins Will Make Crypto Trading More Accessible for Everyone

WinWinCoins is an innovative blockchain project providing a next-gen AI robot trading solution to help investors increase their profits. Its goal is to build an advanced, democratic platform easily accessible to everyone. This way, even newbie traders with little market knowledge can have a positive experience in cryptocurrencies. The WinWinCoins team believes it can accelerate crypto adoption by providing legitimate trading tools available to everyone. To this end, its trading bot could help eliminate losses and increase access to profitable…

SafeSwap Deploys on the Polygon Network to Allow the Farming and Staking of SSGTX

SafeSwap, a decentralized crypto exchange platform, has recently deployed on Polygon, previously known as the Matic Network, a scaling solution for public blockchain networks.   The integration of the Polygon chain by SafeSwap aims to revolutionize the DeFi industry by allowing the farming and staking of SafeSwap's token, SSGTX. The partnership enables users to exchange information without losing ownership or control in the staking and trading industry.  The main objective of SafeSwap is to empower traders and liquidity providers with an easy-to-access financial…

API Inu – A Blockchain Service Suite Joining the Meme Coin Hype

The meme coin hype is leading to the creation of more creative projects revolving around this type of cryptocurrency. In this context, API Inu is one of the latest examples, with a combination of blockchain data services and a meme token. Using TradingView's professional charting libraries, the project wants to provide simple indicators for beginner traders. Furthermore, the team wants its community to enjoy access to essential data like liquidity, trading volume, risk exposure, and fear vs. greed indicators.  API…

Ragdoll Cat NFT – A New Decentralized Project to Help Cats in Need

As the blockchain market grows, we learn more and more about how this technology can influence our daily lives. Ragdoll Cat NFT is a new project that puts together the interest for crypto, decentralized communities, and cats. In the following sections, we wish to report, in a neutral way, all the main features of this new initiative. After describing the ecosystem designed by the team, we’ll include some of the future developments that we should expect from the project. About…

Tiny Colony Review – The First-Ever Expansive Pixelated Tinyverse

Tiny Colony is a pixelated ecosystem of games, events, and experiences built on Solana that allows users to play without requiring NFTs. It features the first-ever construction and management blockchain game and benefits from the backing of iLogos, the prominent developers of Angry Birds 2, and regular partners of Disney, Ubisoft, EA, Rovio, and DreamWorks. The project is currently in full swing after striking partnerships with Fractal Marketplace, Twitch creator Justin Kan, and popular YouTuber iJustine. Furthermore, the game raised…