One more for DeFi – After SUSHI, HOTDOG and YAM, here is Pickle Finance and its PICKLE token. This new protocol aims to take advantage of farming to make stablecoins more stable.
The culinary challenge
The phenomenon is nothing new. Creating a protocol using the name of a food or dish is starting to become commonplace in the DeFi industry.
This time, the pickle is in the spotlight with the Pickle Finance protocol . This project is presented as an “ experience of using farming to keep the value of stablecoins close to their index” .
To do this, Pickle.finance offers to reward the liquidity providers of the Uniswap pools with its Ethereum Code token (in the same way as SushiSwap when it was launched). However, this is distributed based on the value of the stablecoins in each pool. Thus, pools whose stablecoin has a lower value than the index will receive more rewards at the expense of others.
For example, if the DAI is worth $ 0.98 and the USDC and USDT are worth $ 1.02, the DAI / ETH pool will receive more PICKLE tokens than the USDC and USDT pools.
The aim is to get users to sell stablecoins with a higher value to buy those with a lower value, which will have the effect of bringing the values of the two assets closer to their index value, namely 1 dollar. .
For the moment, the platform is active on four Uniswap pools: ETH / DAI, ETH / USDC, ETH / USDT and ETH / sUSD.
In addition, the protocol offers Pickle.swap a simple and efficient way to change its position from one pool to another.
Distribution and price explosion
The creator of the protocol made the choice to opt for a fair distribution , without pre-mine, ICO or private investors.
Thus, tokens will be created and distributed to each block of Ethereum . The number of tokens distributed will start at 10 PIKCLE per block and then decrease weekly for the first month. Thereafter, the figure will be reduced to 1 PIKCLE per block.
The aim of this distribution is to „reward the early adopters of the protocol“ , as the announcement explains . Note also that 2% of all PICKLE distributions will go to a fund intended to finance the development of the protocol .
As often, during the launch of a new DeFi token, the price of PICKLE exploded until reaching 85 dollars , 3 days after its launch. Unfortunately, this trend has not persisted and price has since slumped to $ 26 at the time of writing, according to data compiled by Coingecko.
Unlike a lot of DeFi tokens of this genre, the PICKLE does seem to bring something more. Indeed, this one has a well-defined objective which is to restore the value of stablecoins. A desire that changes from the simple multiplication of governance tokens.