Review and Rating
Pickle Finance and SVET Rating
SVET Execution (Solution – Validity – Equity – Team)
Solution: Pickle Finance is a yield aggregator that uses farming to bring stablecoins closer to their peg. Sometimes there are situations when stablecoins are not pegged to fiat currencies in equal proportions (for example, 1.04 to 1 or 0.95 to 1), because of which users risk losing a lot of money when trading, and it is Pickle Finance solves this problem. The project works according to the yield aggregator model, i.e., attracts users who would provide their funds for liquidity pools of 4 main stablecoins: sUSD, DAI, USDT, USDC. Thus, its business model is quite simple and consists in earning commissions from transactions of other users of cryptocurrencies, it can be either a regular transaction or a game of crypto traders on the market. It follows from this that PICKLE token holders will receive rewards in proportion to the amount of funds placed in liquidity pools. Also, Pickle Finance can increase customer funds by using the Pickle feature Jars, which consists in the use of own developed protocols (for example, flash lending linked to stablecoins) [1].
According to information from the main page of the Pickle website Finance, we can learn that at the moment the project is used by over 6,000 thousand people, and the platform manages assets worth more than $45 million. Moreover, their Internet resource contains information that in February 2022, the project's income amounted to 375 thousand dollars [2]. As a result, the Solution rating is C+.
Validity: I was able to find the exact founding date of Pickle from open sources Finance – September 11, 2020, but the Twitter page gives registration data in August 2020, which is most likely not such a big discrepancy. Regarding the exact platform registration address, I can say that it is not in the public domain, and there are no sources that could give any data on the site: the user agreement has not been posted, and the Whitepaper has been deleted at the moment. However, I was able to find out that the Whitepaper was available in two languages, English and Korean, before the removal. Therefore, it can be assumed that the project originates in South Korea. Moreover, from open sources, I managed to find out that at the end of 2020 there was a merger of Pickle Finance and Yearn.Finance. This was done after the Pickle hack. Finance and loss of $20 million. Yearn.Finance decided to help by joining liquidity pools, as well as joining the efforts of programmers in order to improve security. Then there was information about the full integration of Pickle into the Yearn ecosystem [3, 4]. However, at the moment, Pickle has an independent website maintained by the developers, and there is no mention of Yearn.Finance on the Internet resource itself. Thus, we can say that at the moment it is not known for certain about the legal address of the project and the documents designed to regulate the relationship between the user and the company. Therefore, the Validity rating will be c.
Equity: analyze the financial state of Pickle Finance. Since this project is a yield aggregator, it means that it has its own cryptocurrency – PICKLE. It is important to say that the token is a service token, since it can perform voting functions, i.e. holders can make decisions regarding important proposals, the introduction of new protocols and algorithms, etc. [1]. Let's turn to more specific indicators on the CoinMarketCap website. As of March 7, the cryptocurrency is trading at $4.9 per token. Market capitalization is $9.333 million, and the market capitalization at full issue is $9.348 million. That is, it can be understood that almost the entire volume of issued coins circulates on the market, which at the moment is 1.908 million pieces out of 1.912 million possible. At the same time, the daily trading volume was only $1.5 million, which is a rather modest offer by the standards of the cryptocurrency world [5].
I could not find any information regarding investment in the project. Therefore, it can be concluded that the project had no investors and partners, with the exception of Yearn.Finance. However, apart from the pooling of liquidity pools after the hack, there were no other investments by Yearn, which means the Equity rating is c-.
Team: The Pickle project team is known to Finance wished to remain anonymous and little is known about her to date. Open sources report that there were 4 anonymous developers at the start, the most famous of which is BigBrainBriner, at the moment his Twitter account has been deleted. About the remaining three people, data is still not found [6]. However, one important thing to mention is how Vitalik Buterin, the co-founder of the Ethereum blockchain project, drew attention to the voting system by posting on Twitter on the second day after the launch of Pickle Finance. After that, the price of the cryptocurrency began to grow rapidly [7]. However, there is no good reason to believe that he was involved in the development of the platform.
Now the official page of the project on Twitter has 25 thousand subscribers and is maintained every day by moderators [8].
Thus, the Team rating will be c.
Rating: c+ / c / c- / c
References:
1. What is Pickle Finance and Why You Might Want a Bite of It? https://clck.ru/dXfc6
2. Pickle Finance: Main Page https://www.pickle.finance/
3. Pickle Finance to merge with yEarn.Finance after $20 million loss https://clck.ru/dXfez
4. Yearn.Finance and Pickle Finance announced a merger https://clck.ru/dXfg6
5. CoinMarketCap: Pickle Finance https://clck.ru/dXfhR
6. Understanding Pickle: a beginner's guide and review https://clck.ru/dXfiX
7. The price of the Pickle Finance DeFi token has increased by 1800% in two days. What does
Buterin have to do with it? https://clck.ru/dXfke
8. Twitter: Pickle Finance https://clck.ru/dXfnY
9. Pickle Finance (PICKLE) https://clck.ru/dXfpC
10. What is Pickle Finance? https://clck.ru/dXfpf
11. Pickle Finance: Docs https://docs.pickle.finance/