Cronje, who’s also involved in other initiatives like Curve.finance, an efficient stablecoin automated market maker, notes that “providing cover has been a key initiative at Yearn since working with Nexus Mutual to launch yInsure.”
He adds that Yearn application developers have been working cooperatively with the Cover Protocol development team since inception, so this recent collaboration “comes natural for both.”
Cronje, who previously served as a technical advisor at the Fantom Foundation, says that the two teams working together as one unit should help with optimizing, enhancing, and “amplifying” the work that has already been underway. He also mentioned that Yearn will focus on its “best-in-class” vaults, meanwhile, Cover “becomes the backstop coverage provider for the Yearn product suite, as well as for DeFi as a whole.”
As noted by Crone:
“Cover provides a wider range of coverage and accepts more types of collateral. Cover products like perpetual coverage will get an expanded addressable market. Cover expands into a new cover money market, making the CLAIM token a collateral & borrowable asset.”
“Yearn gets coverage for vaults and can offer users a reduced risk product. Yearn can focus on vaults and lending, with yInsure (and yNFTs) being taken over by Armor. YFI cover writers earn increased fees from YFI coverage underwritten.”
As reported recently, DeFi tokens like yearn.finance’s YFI continue to rally as institutional investors have also started backing decentralized finance initiatives.
As covered, yearn.finance (YFI) is a leading aggregator service for DeFi investors. It uses automation to allow traders to get a chance to maximize returns from yield farming. Yearn.finance aims to simplify the rapidly evolving decentralized finance space for investors who might not be technically savvy enough or who prefer to engage with DeFi in a less committal manner than full-time or professional traders.
YFI tokens are trading for over $23,500 at the time of writing and have a market cap of over $700 million, according to CoinMarketCap data.