TL;DR
Synthetix canceled the Derive acquisition after pushback from both communities, who questioned the deal’s value and swap terms.
The proposal involved swapping 27 DRV for each SNX with an initial lockup, plus a 170 million SNX token issuance that raised concerns.
Derive, which had already severed ties with Synthetix’s infrastructure, will continue operating independently with its perpetual futures model.
Synthetix dropped its plan to acquire Derive, a decentralized options platform, after receiving strong backlash from both communities. The $27 million deal involved a token swap that failed to convince users, mainly because of the proposed exchange rate and acquisition terms.
The plan offered 27 DRV tokens for each SNX, with a three-month lockup period for the new tokens received. Despite some proposed adjustments — such as removing the lockup for those holding under one million DRV — forum discussions made it clear that most users didn’t see value in the agreement. Many Derive users argued their protocol generates more revenue than Synthetix and questioned the actual benefits of joining under those conditions.
One of the most contentious points was the potential impact of issuing 170 million new SNX tokens, which would have increased the total supply from 330 million to 500 million. This information, initially left out of public discussions, fueled distrust over a possible dilution of the value of existing assets.
Synthetix Will Need to Find a New Catalyst for Its Next Product
The deal was part of Synthetix’s plans to speed up the development of its upcoming product, a derivatives platform with a centralized limit order book (CLOB) on Ethereum. Project leaders had highlighted Derive’s technical expertise and the opportunity to engage with its community, but community rejection forced them to pull the proposal.
Derive, originally launched as Lyra within the Synthetix ecosystem, had spent the last few years working toward independence, gradually leaving behind the infrastructure and assets tied to its parent protocol. This distancing included abandoning sUSD as its stablecoin and launching its own perpetual futures product.
Derive Will Continue Operating Independently
After the cancellation, Synthetix confirmed it would continue exploring other options to strengthen its decentralized derivatives offering and move forward with the development of Perps V4. Meanwhile, Derive will maintain its current model, operating independently without joining SNX’s governance structure or treasury
