Synthetix proposes a $27 million token swap to gain ownership of Derive.
The Synthetix Scoop: Synthetix is planning a major move by acquiring Derive, a former ecosystem project, in a hefty $27 million token swap deal.
On May 14, Synthetix announced its intent to swoop up Derive, the decentralized options platform. However, the plan is still awaiting the green light from both Synthetix’s Spartan Council and Derive’s governance.
According to the proposal outlined in SIP-415, the acquisition will take the form of a structured token swap at a ratio of 27:1. Put simply, for every 27 DRV tokens, holders will receive 1 SNX token, with a 3-month lock-up period and a gradual 9-month vesting schedule upon distribution.
In total, Synthetix will be issuing 29.3 million new SNX tokens to facilitate the deal.
Recent data from our site shows a week-long rally for SNX, surging over 45%, with the token reaching a high of $0.96, inches away from the $1 mark. This surge comes after a nearly 50% increase in the past month, pushing the token's market cap to a whopping $316 million.
The acquisition could potentially lead to Synthetix launching its own dedicated derivatives exchange within the ecosystem. This stems from the deal’s inclusion of Derive’s technology, which supports CLOB perpetuals with on-chain settlement acceleration.
Upon approval of the deal, Synthetix will acquire Derive’s treasury, technology, product suite, intellectual property, and governance frameworks. The acquisition also includes Derive’s team and their expertise.
Founder of Synthetix, Kain Warwick, referred to the proposed acquisition as part of the protocol’s effort to reunite scattered projects under the Synthetix ecosystem, hailing Derive as "one of our own" that had originally emerged from Synthetix under the name Lyra.
In the past, Synthetix had also acquired other projects that were once under its wing, including perpetual futures platform Kwenta and token leveraging project TLX.
By uniting these projects, Warwick explained, Synthetix aims to simplify its architecture and governance and unlock the next phase, positioning itself more strongly amongst top Ethereum-based derivatives platforms.
So, now you know, Synthetix is going big with its acquisition of Derive, in a move aimed at strengthening its position in the Ethereum derivatives market and providing a more streamlined ecosystem.
- Synthetix is planning a $27 million token swap deal to acquire Derive, a decentralized options platform.
- The acquisition will take the form of a structured token swap at a ratio of 27:1, with a 3-month lock-up period and a gradual 9-month vesting schedule upon distribution.
- Synthetix will be issuing 29.3 million new SNX tokens to facilitate the deal.
- The acquisition could potentially lead to Synthetix launching its own dedicated derivatives exchange within the ecosystem, utilizing Derive’s technology that supports CLOB perpetuals with on-chain settlement acceleration.
- Upon approval of the deal, Synthetix will acquire Derive’s treasury, technology, product suite, intellectual property, and governance frameworks, as well as Derive’s team and their expertise.
- Synthetix's founder, Kain Warwick, views the proposed acquisition as part of the protocol’s effort to reunite scattered projects under the Synthetix ecosystem, considering Derive as "one of our own" that had originally emerged from Synthetix under the name Lyra.
