Pickle & Yearn ferment co-operation dill

Pickle and Yearn developers have worked out a structure to allow the two projects to work together in symbiosis. This is done to reduce duplicate work, increase specialization, and to leverage shared expertise. A description is provided below with more information to follow. This is an initial minimal release, with further integration planned.

tl;dr

1. Pickle Jars & Yearn’s v2 Vaults merge.
2. Pickle introduces reward Gauges. Pickle emissions remains, with tokens distributed through reward Gauges.
3. Yearn Vault depositors can earn additional rewards by depositing Vault shares in Gauges.
4. Pickle Governance participants get voting power by locking Pickle for set maturity dates, and receive DILL.
5. Yearn vault depositors can earn additional rewards by locking Pickle for DILL, up to 2.5x, the more DILL they hold the greater the rewards.
6. Gauge deposit, withdrawal, performance, and protocol fees go to DILL holders.
7. A new token, CORNICHON, tracks losses from the recent Evil Jar exploit, distributed proportionally to victims of the attack.

Synergies

• Pickle gets integrated into Yearn’s ecosystem and share its development and security expertise.
• Pickle and Yearn TVL merges.
• Pickle earns rewards from all Yearn depositors who use their reward Gauges.
• Yearn onboards Pickle’s developers and strategy creators to work on its product offering and share strategy fees.
• Users enjoy stronger returns through boosted rewards.

List of changes

• Jars merge with Yearn. Pickle Jars will be deployed as Yearn vaults, using the forthcoming v2 design. A more detailed migration plan to follow.
• Strategies earn 10% performance fees. Pickle devs will continue to write strategies, earning a 10% performance fee under the new Yearn fee structure.
• Reward Gauges are introduced. Pickle tokens are rewarded through staking Yearn vault tokens in Pickle gauges. The emissions schedule stays roughly the same. Rewards can be boosted by DILL (see below). Reward gauges may earn Pickle based on the underlying Yearn vault token.
• DILL boosts Pickle rewards. Pickle tokens can now be vote locked. Locking Pickle yields DILL (Pickle tokens that are placed in time locked escrow). The longer time period the Pickle is locked for, the more DILLs are received. The minimum locking period is 1 week and the maximum period is 4 years. Holders of DILL can participate in Pickle governance and boost rewards received from Yearn Vault gauges. Pickle Governance decides on gauge weights, fee allocations, and other protocol parameters.
• CORNICHON tracks Evil Jar losses. A new token, CORNICHON, is created to track losses stemming from the recent Evil Jar attack against Pickle’s Dai Jar. Tokens will be minted against a snapshot of balances at the time of the attack, and distributed to victims proportionally. Further measures may then be adopted by Pickle Governance through its regular decision process.
• Pickle multi-sig rotates. To enable timely development and testing of the new system, the keys for Pickle’s executive multi-sig are rotated.

Discuss

• Yearn Forum Post: https://gov.yearn.finance/t/pickle-yearn-ferments-co-operation-dill/

Acknowledgments

The entire Curve team for their Gauge and veCRV design, and to Angel specifically for help provided during integration and research.

Resources

• Curve.fi Gauges
• Evil-Jar Technical Post-mortem