Synthetix Considers Purchase of Options Platform Derive in $27M Token-Swap Deal

Ethereum-based derivatives powerhouse Synthetix is considering buying options trading platform Derive in an token-for-token deal valued at $27 million that would see the project absorbed back into the protocol that gave it birth.

The proposal, SIP-415 on Synthetix and DIP on Derive, needs to be approved by both communities and would see Derive’s treasury, codebase and operational stack incorporated into Synthetix.

The deal marks a rare instance of a token swap-based acquisition in decentralized finance (DeFi), and is being pitched as part of Synthetix's growing ecosystem. Derive (DRV) token holders would receive 27 newly issued SNX tokens for each DRV they own. The tokens are subject to a three-month lockup and nine-month linear vesting schedule. Synthetix would mint up to 29.3 million SNX, amounting to roughly 8.6% inflation of its current token supply.

Derive, originally Lyra, went live in 2021 and was spun out from Synthetix. It has previously moved away from the protocol, ending support for Synthetix’s sUSD stablecoin, switching to GMX for liquidity, and launching its own perpetual futures product.

Early responses from the Derive community showed dissatisfaction with the idea.

“I don´t see any benefit for Derive on it,” one commenter said. “In the other hand (sic), it all looks great and advantageous for Synthetix.”

Another user took aim at the proposed valuations.

“That exchange rate is a poor reflection of the value of derive as a platform,” commenter ‘Ramjo’ said. “And then have the nerve to put a long vesting period on it AS WELL.”

DRV prices are down 20% in the past 24 hours, data on CoinGecko shows, while SNX is up 7%.