Synthetix, a leading DeFi derivatives protocol, has proposed to acquire the decentralized options platform Derive through a structured token swap deal valued at approximately $27 million. The acquisition plan involves issuing 29.3 million new SNX tokens to Derive token holders at a swap ratio of 1 SNX for every 27 DRV tokens. The SNX tokens allocated will be subject to a three-month lock-up followed by a nine-month linear vesting period.
This strategic move aims to reintegrate a former ecosystem project that originally spun off from Synthetix under the name Lyra, consolidating Derive’s trading infrastructure and team into Synthetix’s core protocol. The proposal, formalized as Synthetix Improvement Proposal 415 (SIP-415), is pending community approval via votes from both the Synthetix governing DAO (the Spartan Council) and Derive’s governance.
If approved, the acquisition would enhance Synthetix’s capabilities in offering derivatives products including perpetuals and options. It also positions the protocol to launch its own dedicated derivatives exchange, leveraging Derive’s technology which facilitates centralized limit order book (CLOB) perpetuals with accelerated on-chain settlement. This integration is poised to enable Synthetix to compete directly with major derivatives platforms like Hyperliquid, Binance, Deribit, and dYdX.
Synthetix founder Kain Warwick outlined the acquisition as part of a broader strategy to vertical reintegration within the ecosystem, following previous acquisitions of projects like Kwenta and TLX. Warwick described the process as "reuniting under one banner," simplifying governance and architecture while paving the pathway for new phases of growth.
At the time of the announcement, SNX tokens were experiencing a positive rally, trading near $0.94 and approaching the $1 mark after a nearly 50% increase in the past month. The proposal is expected to have implications for SNX’s market dynamics given the token issuance involved and the potential for expanded derivatives offerings.
Separately, Synthetix continues efforts to stabilize its sUSD stablecoin with a new staking mechanism designed to restore the sUSD peg and reduce circulating supply, highlighting ongoing community-driven initiatives to strengthen the protocol.