In another major move, today a proposal has been raised for the acquisition of Derive, a leading decentralised options platform and former Synthetix ecosystem project. The transaction, outlined in SIP-415, marks a major step in consolidating product, talent and token economy into a single, unified derivatives protocol on Ethereum mainnet.
Pending approval by the Spartan Council and Derive governance, the deal will be structured as a token exchange at a 27:1 DRV-to-SNX ratio, valuing the deal at approximately $27 million USD. To facilitate this, Synthetix will issue up to 29.3 million SNX tokens (3-month lock-up and 9-month linear vesting) in order to merge the Derive token supply and market cap with that of SNX.
Strategic Rationale: One Protocol, Unified Direction
This acquisition accelerates Synthetix’s push towards a leading Ethereum mainnet perps engine, by integrating Derive’s capabilities and team into the core protocol. Key benefits include:
- Product Suite Expansion: Derive’s CLOB-based perpetuals exchange, delivering a hybrid decentralised derivatives stack with advanced Options Trading infrastructure on the table which can be merged with Synthetix to rival Hyperliquid, Binance, Deribit, and dYdX.
- Tech & Team Integration: The Derive team, (some of whom are Synthetix OGs already) bring critical experience in modular CLOB design, L1/L2 systems, and options mechanics: all directly complementing Synthetix DNA and roadmap.
- Accelerated Deployment: With Derive’s app-chain based stack production-ready, the mainnet deployment of the CLOB exchange can begin immediately after acquisition close.
- Community and Governance Consolidation: Derive and Synthetix communities share common roots and values. This move unites us under a single token, governance structure, and go-to-market strategy, enhancing both network effects and operational clarity.
- Value Creation: With all protocol products and revenue now flowing through a single token, the investment thesis becomes stronger and simpler. What could be better as we focus on bringing more value to Ethereum mainnet via the SNX token.
Reuniting the Tribe
Launched originally as Lyra, Derive emerged from Synthetix during a period when the protocol deprioritised direct product development in favour of supporting external integrators. That model led to fragmentation and misaligned incentives across the ecosystem.
The past six months have reversed that trajectory. With a renewed focus on product velocity, protocol-level capital efficiency, and ecosystem consolidation, Synthetix has returned to building primitives directly—starting with the re-acquisitions of Kwenta and TLX, and now, Derive.
“Derive was born from the same DNA,” said Kain Warwick, founder of Synthetix. “Reuniting under one banner simplifies our architecture and governance and unlocks the next phase. This is the kids going out to build their own successful start-ups, and coming back to join the family business ”
Back to First Principles
This acquisition reflects our return to what made Synthetix powerful in the first place: vertical integration, token-aligned incentives, and world-class on-chain products. Built and owned by the protocol itself.
Options, perps, app-chains, and vaults; deployed natively, governed on-chain, and executed with urgency.
“By returning to Ethereum for its credible neutrality, composable settlement, and trusted self-custody, Synthetix’s redemption path is set to return to being a market-leading decentralised derivatives platform.” – Ben “Fenway” Celermajer
What’s Next
The proposal is subject to approval by both governance bodies: the Spartan Council and Derive token holders, via SIP-415 and DIP-XXX, respectively. Upon approval, Derive’s treasury, intellectual property, repos, UI stack, and governance systems will be merged into the Synthetix protocol. DRV holders will receive SNX under the agreed vesting terms, aligning long-term incentives across the unified network.
