Intro to Pickle Finance
This site hosts guides, FAQs, and documentation produced through the joint efforts of the community and the Pickle Finance team.
- These docs have been jointly prepared by the Pickle development team and by community members.
- They are intended as a reference on the current state of the protocol.
- Please come to our Discord and approach a member of the team directly if there is any additional clarification required.
- Pickle aggregates and compounds yield from other protocols
- It saves you time and money compared to doing it yourself.
Yield Aggregators exist for yield farmers (like you) who want to invest money and maximize profits by leveraging different DeFi protocols and strategies for elevated returns.
Pickle Finance makes it easy for you to earn great compounding yields on your deposits, when you don’t have the time to compound it daily or the gas fee is too high for frequent compounding to be done.
In short, Pickle Finance is always on the lookout for opportunities to generate yield on your assets for all risk tolerance levels.
- Pickle Finance has Jars, and Farms.
- Jars compound your returns from other protocols for you.
- Farms provide you extra rewards for staking your jar tokens.
illustration on how Pickle Finance works
Jars are the Pickle equivalent of yearn.finance’s vaults. A jar receives a specific asset (usually an LP token), such as sLP ALCX/ETH (Liquidity provider token for the ALCX/ETH pair on SushiSwap) and utilizes a strategy developed by the Pickle Finance team to earn yield on that asset. Your asset will auto-compound to earn more of itself, meaning your holdings of that asset will only increase. However, jars don’t prevent your asset from losing value relative to USD. Learn more about our set of Pickle Jars here.
Farms are the “next step” after putting an asset into a jar. When you deposit an asset into a jar, such as sLP ALCX/ETH, you will receive a number of pTokens (in this example, pSLP ALCX/ETH) that represent your share of the tokens in the Jar. These pTokens can then be staked in the appropriate farm to earn additional $PICKLE rewards on top of your existing rewards. Your $PICKLE rewards can be boosted by locking existing $PICKLE tokens for $DILL for up to four years. Learn more about Pickle Farms here.
- Pickle Finance allows you to set it and forget it
- Pickle Finance may be tax-efficient when used long term
- Pickle Finance is gas efficient
As one of the first yield farming protocols to launch at the start of DeFi's boom in September 2020, Pickle Finance continues to push the envelope by scouting the most promising protocols, continuously building engaging partnerships, and bringing exciting opportunities to our users. The development team tirelessly works to craft some of the most unique and exciting strategies to complement the proven and battle-tested options already in the marketplace.
Pickle Finance also offers you several benefits. First, you don’t need to compound your returns manually. Manually harvesting and then reinvesting rewards can take a lot of time (and gas!) that you'll never get back. In periods of low gas costs, however, yields throughout the DeFi ecosystem also tend to fall, leaving Pickle Finance as a viable and gas-efficient alternative in any market cycle.
Finally, in some tax jurisdictions, blockchain tax analysis reports will mark any harvesting of a reward token as a taxable event. Since the Pickle Jar is doing the harvesting and compounding for you, these events are likely to not be taxable until you withdraw from the jar. (Do your own research if this analysis matches that of your tax jurisdiction.)
These benefits should be enough for most people, but Pickle also offers farming rewards which can juice your returns substantially as well. These rewards comprise of $PICKLE emissions from the protocol's token contract, with dual rewards also provided from time to time.
At the end of the day, Pickle Finance offers "set-it-and-forget-it" convenience you can trust!
Pickle is governed by a proto-DAO (Decentralized Autonomous Organization). Holders of “DILL”, a representation of a PICKLE token that has been time-locked on the platform for a set duration, become members of the $DILLDAO. These members actively influence the protocol and its future through participation in 'soft governance'.
Community members are able to to put up Pickle Improvement Proposals, or 'PIPs', which $DILL holders can then vote on. PIPs can be the first step towards making a variety of changes to the protocol: including but not limited to approving new hires, passing grants, changing the value of emissions and more.
Should a PIP be passed, it continues to remain unbinding subject to the team's agreement to execute it.