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Pickle Finance: an experiment in using farming to bring stablecoins closer to their peg

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PICKLE came out as a trial protocol, and the aim is to move stablecoins nearer to their pegs. PICKLE plans to achieve this through incentivizing farming, governance, and vault. PICKLE is undergoing distribution to Uniswap liquidity pools of various stable coins. By doing this, a significant movement between stable coins is encouraged. 

PICKLE is also under usage to govern and control the monetary policy of the ecosystem. Stable coins have drifted off peg because of fluctuating market factors and restrictions in monetary policy. The evidence of a surge in yield farming has worsened the situation since farmers trade in vast amounts of stablecoins to find the best yield.

For the decentralized finance ecosystem to be thriving, a much more stable, stablecoin is needed.

PICKLE in Decentralized Finance

It motivates and empowers farmers, and in return, this helps the decentralized finance ecosystem to maintain the pegs of the top four stablecoins, namely DAI, USDC, USDT, and sUSD. PICKLE is generated and shared with Uniswap liquidity pools. So, when a stable currency goes above peg, the protocol shares less PICKLE to the collection and more to different pools and vice versa.  

PICKLE Swap: It is relatively easy to follow the top yield among the pools. You can alter your liquidity pool position from one stable coin pool to another through the PICKLE Swap.

PICKLE Vaults: The vaults use vibrant energy to pull back of-peg stablecoins. There are two techniques used during the launch; the first is to deposit sCRV for you to get CRV tokens and then to dispose of the CRV tokens for the least supplied stablecoin. The second method is to use flash loans to increase leverage. 

PICKLE Governance and Sustainability: Those with PICKLE have the power to determine their future. Users vote using their PICKLEs even though quadratic voting will be introduced. This will provide a better democracy in governance. Approximately 5% of every PICKLE shared is set aside for further developments. It also gives the community a chance to work full time on the project.

PICKLEJars: It is developed from PICKLE Vaults. Even though it is not audited yet, its development is borrowed from Yearn Vaults. Every PICKLE Jar has a different alpha seeking technique. What happens is that the liquidity pools deposit pAsset into pJars and get pAsset in return. The asset is set out to gain returns through an alpha seeking technique. 

The gains are then shared within the pool, resulting in pAsset appreciation and, at the same time, supporting governance. 3% is given to management, 0.5 to the function caller, and 1.5% is used to buy and burn PICKLEs. There is also an additional 0.5% for withdrawal fees. 

All are invited to join the community. There has already been a proposal to channel profits directly to PICKLE liquidity pools rather than buying and burning. PICKLE’s development team is always to team up with the community to make everything better.

Token Distribution Schedule

A PICKLE is shared per block across the four stablecoin pools and PICKLE pool. Half of the reward is for the PICKLE pool, and the remaining goes to the other four pools. During the launch, early adopters of the protocol will be rewarded using a ten times multiplier.

You can deposit liquidity pool tokens to the PICKLE contract through https://PICKLE.finance/. Feel free to join the discussions on Twitter, Discord, Telegram, among others. Lastly, the PICKLE Protocol can be said to be using the Elastic Farming Incentivization approach. 

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