Synthetix Proposes $27M Token Swap to Acquire Derive, Expand Dominance in On-Chain Derivatives Markets

Synthetix, a decentralized derivatives protocol, proposes to acquire Ethereum-based Derive for $27 million via a token swap. The acquisition aims to expand Synthetix's dominance in on-chain derivatives markets and unify core components under a single protocol. Derive's infrastructure, including its centralized limit order book engine, is seen as complementary to Synthetix's roadmap. The proposed swap involves the issuance of 29.3 million new SNX tokens.

Synthetix, a leading decentralized derivatives protocol, has proposed to acquire Ethereum-based decentralized options platform Derive for $27 million via a token swap. The acquisition aims to expand Synthetix's dominance in on-chain derivatives markets and unify core components under a single protocol. Derive's infrastructure, including its centralized limit order book (CLOB) engine, is seen as complementary to Synthetix's roadmap.

The proposal, outlined in Synthetix Improvement Proposal (SIP-415), involves a structured token swap at a ratio of 27:1. This means that for every 27 DRV tokens, holders would receive 1 SNX (Synthetix's native token) under a three-month lock-up and a nine-month linear vesting period upon token distribution. As part of the deal, Synthetix will issue 29.3 million new SNX tokens, valued at $27 million [1].

The acquisition is part of Synthetix's broader vision of vertical reintegration, which aims to unify core components under a single protocol as it prepares to launch Synthetix v4 on the Ethereum mainnet. The integration of Derive's options trading infrastructure is expected to rival other major derivatives-offering platforms such as Hyperliquid, Binance, Deribit, and dYdX [2].

Synthetix's founder, 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 [1].

The Synthetix community will determine whether to approve SIP-415 via on-chain voting. If accepted, this will be another major milestone in the protocol's efforts to consolidate and lead the next wave of decentralized finance innovation on Ethereum.

References:
[1] https://crypto.news/synthetix-wants-to-acquire-derive-through-a-27m-token-swap/
[2] https://en.bitcoinsistemi.com/acquisitions-continue-in-the-cryptocurrency-market-decentralized-derivatives-protocol-synthetix-makes-a-major-acquisition-here-are-the-details/