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Synthetix makes $27M bid to re-acquire crypto options platform Derive

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Decentralized finance platform Synthetix is planning to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive.

Synthetix said in a May 14 blog post that it plans to acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million. 

The transaction is subject to approval from both the Synthetix and Derive communities, which will take a vote on the proposal, called SIP-415, next week.

If approved, the acquisition will combine Derive’s front-end and real-world asset (RWA) expertise with Synthetix’s derivatives infrastructure.

Derive originally launched as Lyra in 2021, having spun out from the Synthetix ecosystem. Synthetix said the acquisition is part of a broader strategy that includes recent acquisitions of Kwenta and TLX, reflecting ecosystem consolidation.

“Reuniting under one banner simplifies our architecture and governance and unlocks the next phase,” Synthetix founder Kain Warwick said. “This is the kids going out to build their own successful startups, and coming back to join the family business.”

“This re-acquisition marks the next chapter of vertical reintegration with direct protocol ownership of perps, options, and app chains: all of which already have SNX in their DNA,” Synthetix added on X.

Source: Synthetix

The announcement names Hyperliquid, Binance, dYdX, and Deribit, which will be acquired by Coinbase, as competitors, underlining Synthetix’s ambitions to rival major crypto derivatives platforms.

SNX token mint and lockup

To facilitate the acquisition, Ethereum-based Synthetix will issue up to 29.3 million of its self-titled Synthetix (SNX) token with a three-month lock-up followed by a nine-month linear vesting.

SNX has gained 11.5% on the day to reach $0.94 at the time of writing.

Related: Upbit and Bithumb suspend Synthetix token deposits, citing sUSD risks 

However, like most altcoins, it is massively down from its peak and is down almost 97% from its all-time high of $28.53 in February 2021, according to CoinGecko. 

Synthetix has also suffered recently as its native stablecoin, sUSD, depegged and fell to a low of $0.68 on April 18. The dollar-pegged asset remains below its peg at $0.93 at the time of writing.  

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ECB official sees digital euro as key to protecting EU ‘sovereignty’

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Piero Cipollone said the bloc is on track to test real transactions in 2027 and roll out a digital euro as early as 2029, pending legislation this year.

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Netanyahu floats use of blockchain as solution to potential financial sanctions

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Ahead of elections, Prime Minister Benjamin Netanyahu said Israel could turn to blockchain and crypto to skirt potential international sanctions, to the dismay of opponents and the country’s central banker.

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Wells Fargo and five others object to OKX-ICE tokenized stock listings: Report

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As of Friday, 22 companies had filed objections as part of the joint venture’s proposed tokenized stock platform under the SEC’s innovation exemption.

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