Synthetix Bids $27M to Reacquire Derive Options

• Synthetix plans $27M token deal to reacquire Derive.
• Derive adds RWA and options depth to Synthetix’s platform.
• SNX token rally follows deal news despite sUSD peg concerns.

Decentralized finance (DeFi) pioneer Synthetix has announced a bold plan to re-acquire Derive, a crypto options platform that originally spun off from its ecosystem. The proposed $27 million token exchange deal was unveiled in a blog post on May 14 and is contingent upon approval from both communities via governance vote under SIP-415, set to occur next week.

Synthetix plans to exchange 1 SNX token for 27 DRV tokens, effectively valuing Derive at around $27 million. The move is part of a wider strategy to vertically reintegrate and strengthen the Synthetix ecosystem by bringing its offshoot projects back into the fold.

From Lyra to Derive and Now Full Circle

Derive began its journey as Lyra in 2021, an options trading platform that emerged from within the Synthetix ecosystem. Now, three years later, the “family reunion,” as founder Kain Warwick puts it, represents a significant strategic step.

“This is the kids going out to build their successful startups, and coming back to join the family business,” said Warwick. 

He emphasized that the re-acquisition simplifies governance and system architecture, unlocking new possibilities for growth in the crypto derivatives space.

Upon approval, the transaction will combine Derive’s front-end user interface and RWA (real-world asset) capabilities with Synthetix’s back-end derivatives platform, a combination that is expected to make the merged platform more competitive.

Competing with the Big Players

Synthetix’s ambitions target the upper tier of the crypto derivatives market. In its announcement, it cited Hyperliquid, Binance, dYdX, and Deribit (soon to be acquired by Coinbase) as competitors, signaling that the protocol is ready to escalate its presence in the space.

The re-acquisition also follows similar consolidation efforts by Synthetix, including recent acquisitions of Kwenta and TLX, indicating a shift toward full-stack protocol control owning the perps, options, and front-end chains entirely within the Synthetix ecosystem.

To fund the deal, Synthetix will mint up to 29.3 million SNX tokens, subject to a three-month lock-up and nine-month linear vesting schedule. The minting plan comes at a time when SNX has rallied, gaining 11.5% in a day to trade at $0.94, though it remains 97% below its all-time high of $28.53 in February 2021.

Still, challenges persist. Synthetix stablecoin sUSD recently depegged, going as low as $0.68 in April and currently trades below its target price of $1 at $0.93.

Despite all these headwinds, Derive re-acquisition is an important vote of confidence in the long-term platform strategy.

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