Food-related DeFi projects have slowly taken over crypto in the last quarter, with many of these projects suffering from contentious issues, like the Uniswap fork, SushiSwap's vampire attack, and the market dump of $13 million worth of Ether (ETH) by lead developer Chef Nomi.
Then there’s the infamous Hotdog DeFi meme coin which dumped 99.9% hours after listing. These quick pump and dump style projects have the capacity to give DeFi a bad name but taking a closer look at the list of food themed projects reveals that not all of the offerings are rotten.
On Sept. 11 a new project called Pickle Finance emerged from a pantry stuffed with food-themed DeFi tokens. The project works like other popular DeFi protocols that reward users who provide liquidity with high interest and additional token rewards.
To date, the project has accrued more than $347 million in total value locked and one of the primary liquidity pools is offering up to 4,500% APY.
The project aims to bring price stability to the four biggest stablecoins in the crypto sector and it has quickly risen to become the 13th largest DeFi protocol in terms of total value locked.
Demand for the project is also reflected in the platform’s native token, (PICKLE), which quickly rose from $4.41 on Sept. 12 to $70.21 at the time of writing.‘Off peg bad, on peg good’
The Pickle Finance protocol allows users to earn interest and PICKLE, Ether, and stablecoin pairings as a reward for providing liquidity for DAI, USDC, USDT, and sUSD. While doing so, the seemingly Rick and Morty-inspired project aims to correct the pegs of these stablecoins which have often fluctuated several percentage points above their peg throughout 2020.
As so, more rewards are given to below-peg stablecoins and less to above-peg stablecoins, incentivising users to buy and stake the former, and to sell the latter. This system tries to balance market conditions that push the peg of stablecoins...