Synthetix Proposes $27M Derive Acquisition Via Token Swap

Synthetix, a prominent decentralized finance (DeFi) protocol, has proposed acquiring Derive, a decentralized options platform, through a token swap deal. The acquisition involves 29.3 million SNX tokens, valued at approximately $27 million, with a lock-up and vesting period. The proposal is currently awaiting review from Synthetix’s governing DAO, the Spartan Council, and Derive governance before it can be executed.

The acquisition aims to integrate Derive’s capabilities and team into the core Synthetix protocol, accelerating its push towards becoming a leading Ethereum mainnet perpetuals engine. The deal would take the form of a structured token swap at a ratio of 27:1, meaning that for every 27 DRV tokens, holders would receive 1 SNX token under a three-month lock and a nine-month linear vesting period upon token distribution.

As part of the deal, Synthetix will issue 29.3 million new SNX tokens. The acquisition of Derive could potentially lead to the protocol launching its own dedicated derivatives exchange on the ecosystem. This is because the protocol would be acquiring not only members of the Derive team but also its technology, which facilitates CLOB perpetuals with on-chain settlement acceleration.

The integration of Derive’s options trading infrastructure into Synthetix is poised to rival other major derivatives-offering platforms. Founder of Synthetix, Kain Warwick, stated that the proposed acquisition of Derive is part of the protocol’s effort to reunite scattered projects under the Synthetix ecosystem. He explained that Derive was “born from the same DNA,” as it had originally emerged from Synthetix under the name Lyra.

The protocol had previously acquired other projects that were once under Synthetix, including perpetual futures platform Kwenta and token leveraging project TLX. Warwick further elaborated that reuniting under one banner simplifies the architecture and governance and unlocks the next phase of development for Synthetix. This move is seen as a strategic effort to consolidate the ecosystem and enhance its competitive position in the DeFi space.