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Pickle. Finance’s Total Value locked exceeds $374 M in just 4 days!

Photo of: Dennis Ramos
by Dennis Ramos

Food-related DeFi projects are quite the flavor of the season, making their way to top the DeFi charts. While many of them have floundered on the way owing to issues like Uniswap fork and market dump of Ether worth $13 million by Chef Nomi, yet it manages to grab headlines for the right reasons. Despite some projects like Hotdog trying to tarnish the name of DeFi, there are some good projects also. On September 11’th, emerged Pickle. Finance much on the lines of the popular DeFi protocols. It rewards users who provide liquidity with high interests as well as additional token rewards. 

And now the popularity of the project has soared high with a to-date accrual of more than $347 million in total value locked. It is one of those primary liquidity pools that is offering close to 4500% APY. Pickle. Finance works with the aim to bring price stability to the biggest stablecoins in the crypto space. In terms of TVL, it stands on the 13’th position. The demand for the project was also seen in the price rise of its native token PICKLE from $4.41 on 12th September to $70.21 a few hours ago. 

The protocol lets users earn high interests and also garner PICKLE, Ether, and different stable coin pairings as a reward to provide liquidity for DAI, USDC, USDT, and sUSD. In a bid to do that it will automatically correct the pegs of these stable coins which have been volatile enough to deviate high percentage points above their peg throughout this year. Rewards are mostly endowed to below-peg stable coins and lesser rewards are given to the above-peg stablecoins. This will incentivize the users to buy as well as take the below-peg stablecoins and sell the ones that are above the peg. 

This novel concept tries to balance the different market conditions which eventually pushes the peg of stablecoins away from the core asset. This will eventually focus them in the right direction with a wonderfully articulated incentive structure. Yesterday, Pickle. Finance also went on to introduce what is called as pJars, similar to Yield. Finance’s pVaults. pJars with the available deposited funds will arbitrage between stablecoins and take advantage of different protocols to bring rewards to token holders pushing stablecoins towards their peg.

In the first week of its trade, the token has recorded a great performance with nearly $50 million daily volume following its launch. 

Source: CoinGecko

The token can be used to vote on community proposals with a one-of-a-kind quadratic voting mechanism reducing the control whales have over decentralized governance systems. The biggest problem hounding several DeFi projects is that liquidity providers first provide liquidity to a particular project, then move on to another high yielding project by withdrawing their funds. So, they move on once the high APY of the project ends and this may be true in the case of Pickle whose high APY pools are set to mature in the coming days. The only ray of hope seemingly is additional rewards through pJars that will have a positive impact on the token price and have worked in the case of projects like Aave and Yearn. Finance.