MixBytes PeckShield Haechi
MixBytes PeckShield Haechi
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Last updated: Dec 19, 2023
Pickle Finance is a multi-chain asset management app that operates as a yield aggregator.
Pickle was born during the DeFi summer of 2020 launching first on Ethereum and later expanding onto more networks with a promise to deploy on even more chains in the future.
While starting partly as a fork of Yearn Finance, the cross-chain Pickle Finance continues to help farmers to maximize their yields as a part of the Yearn Finance ecosystem.
Pickle was tailored as an optimal tool for yield farmers. Instead of picking a pool in which to deposit their assets and later having to manually collect and deposit rewards, Pickle offers its users automated services of auto-compounding called "jars". Each jar is basically a pool of assets, allowing users to save time and money they would otherwise spend on fees.
Pickle's jars are in fact forked versions of Yearn's vaults. Each vault works along with a preset strategy that varies depending on the chosen network or type of assets within the jar. For the most part, jars are filled with LP tokens of various protocols. Pickle Finance's team watches over the strategy, regularly adding updates and fixes. Thus, Pickle Finance sells not only its blockchain and frontend infrastructure but also its expertise.
While enjoying the auto-compounding feature of Pickle's jars and saving on fees, users receive a corresponding amount of liquid pTokens in return for their deposit. These pTokens may be used for staking on Pickle's second product which is called Farms. The only Pickle Farm that stands out is the Pickle Power pool, which requires staking Uniswap PICKLE/ETH LP tokens instead of pJar tokens. By staking pTokens users are able to collect additional rewards in PICKLE, which can be also locked for DILL tokens to earn a proportionate share of all protocol revenues in ETH and PICKLE, distributed every week.
There are two types of products on the Pickle Finance app - Jars and Farms. The jars and farms available differ from network to network but they work in the same way.
The jars may also differ in commissions - Pickle Finance fees vary from 0.2% to up to 22% for its harvesting services. Around 95% of these fees are shared among DILL holders. The revenues for users holding DILL are paid out in ETH and PICKLE.
Users may deposit certain LP tokens from other protocols into Pickle jars, with custom presets to maximize yield rewards and auto-compound them. Pickle Finance’s staking options are aggregated in Farms. Users may stake their pJar tokens in a pool of choice to receive additional rewards in PICKLE, while farming.
Pickle Finance’s wallet support includes Metamask, Wallet Connect, and Coinbase wallet.
PICKLE is Pickle Finance’s native token. It is an ERC-20 token with a max supply of 1,912,382 tokens.
PICKLE is issued to incentivize farmers and has additional ways to use it outside the Pickle Finance app.
It also exists in a form of DILL governance token, which represents an amount of native tokens time-locked in the protocol. Owning DILL opens up a way to participate in the governance of the Pickle Finance DAO and gives a share of the protocol’s fees. More DILL tokens bring up more voting power for holders which they can use to determine which Jars get PICKLE rewards. Time-locking PICKLE also gets rewarded by a boost for all of the user’s active yields.
The Pickle Finance hack, later called EvilJarAttack, took place in November 2020. An attacker was able to steal over $19 million in cDAI using a combination of design flaws in Pickle Finance's smart contracts. The PICKLE token almost halved in price at that time.
Pickle is still in the process of mitigating its users for their loss. It does so using a specially created for this case debt token called Cornichon (CORN). Pickle Finance allocates 5% of the protocol’s revenue into the CORN/DAI pool on Uniswap, where it buys back debt tokens and burns them at the current price.
The Pickle Finance app was built by a team of four anonymous developers. One of them, known as BigBrainBriner, is commonly active on the project's Github.
The protocol's Treasury is secured by a 2/5 multisig wallet with the signature holders being mentioned in the Pickle Finance's docs. While emission of the PICKLE tokens to the Farms is said to be secured by the 24-hour timelock contract, applied to the MasterChef contract’s all key admin functions. The same method is applied to all key admin functions of the PickleJar contract, they are controlled with a time lock of 12 hours.
Pickle Finance lists lots of its DeFi summer generation projects naming them as past collaborators, including Abracadabra, Alchemics, Sushiswap, Frax Finance, Curve, Polygon, Terra, Cream, Maple, and Mai Finance.
The main partner of Pickle Finance is Yearn, with whom the project merged after the hack in November 2020.
The latest partnership Pickle Finance announced was with Frax Finance, for the new staking service dubbed FRAX Brinery.
Recently, the project has been whitelisted by the popular AMM Balancer to create the Balancer Brinery. According to the Pickle Finance team, the FRAX and Balancer Brineries will be similar to the cvxCRV pool on Convex, providing liquidity and max boosted yields for veFXS and veBAL.
The 2022 roadmap promises users even more yield aggregation opportunities such as the announced Uniswap V3 OP Jars and new strategies for BAL, Yearn, and DYDX Brineries and veToken. The team also considers adding so-called Option Jars and Private Jars to the project's product suite. Moreover, the new product named Pickling Jars is planned for Q4 2022. Pickle Finance continues to work on its multi-chain and multi-layer strategy promising to enable users to vote on-chain on any supported chain and providing the opportunities to lock their DILL tokens on L2 networks with favorable boosts and abilities to claim rewards.