- Synthetix will issue 29.3 million SNX tokens to buy Derive in a community vote deal.
- Derive users to receive SNX tokens with a 12-month lock-up and vesting schedule.
- The move will help Synthetix grow its power in Ethereum-based trading and asset tools.
Decentralized finance platform Synthetix has proposed a $27 million token swap deal to reacquire the crypto options platform Derive. Announced on May 14, the proposal outlines a 27:1 token exchange ratio, and if approved, Synthetix will issue 29.3 million SNX tokens, representing 8.6% supply inflation, to Derive holders.
Strategy for Vertical Reintegration
Synthetix aims to strengthen its Ethereum mainnet derivatives infrastructure with this strategic acquisition. Derive, initially launched in 2021 as Lyra, spun out from the Synthetix ecosystem. The acquisition would reintegrate Derive’s technology, team, and treasury back into the protocol.
Additionally, Derive’s front-end expertise and real-world asset (RWA) functionality will combine with Synthetix’s derivatives backend. This merger supports the upcoming Synthetix V4 rollout, aligning with broader ecosystem consolidation efforts.
This move follows earlier acquisitions of Kwenta and TLX. “This re-acquisition marks the next chapter of vertical reintegration,” Synthetix said on X. The protocol will directly control perps, options, and app chains under the SNX ecosystem.
Token Distribution and Governance
DRV token holders would receive 1 SNX token for every 27 DRV tokens held, with a three-month lock-up and a nine-month vesting period. After this, a nine-month linear vesting schedule would apply to all new SNX tokens issued in the deal.
The deal is proposed under Synthetix Improvement Proposal 415 (SIP-415). An on-chain vote is scheduled next week for both the Synthetix and Derive communities. Approval from both sides is necessary for the proposal to move forward.
Synthetix contributor Kain Warwick stated, “This is the kids going out to build their own successful startups and coming back to join the family business.” He framed the deal as a step toward governance simplification and infrastructure unification.
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Expanding Market Reach
The proposal highlights Synthetix’s plans to dominate the derivatives space in the Ethereum world. By digesting Derive’s product suite, the protocol wants to scale against the biggest competitors, such as Binance, dYdX, Deribit, and Hyperliquid.
Furthermore, the deal is a well-thought-out strategy to expand SNX’s footprint in key DeFi market segments. “This acquisition takes Synthetix closer to its goal of becoming the premier Ethereum mainnet perps engine,” the team said in its announcement.
