The decentralized finance platform Synthetix and the Derive options protocol (formerly Lyra) have abandoned the planned $27 million merger. The deal, outlined in proposal SIP-415, involved a token exchange at a ratio of 27 DRV to 1 SNX, valuing Derive at $27 million. Synthetix planned to issue 29.3 million new SNX tokens to complete the deal. However, after active discussions and negative community feedback regarding the valuation and potential dilution of SNX token value, the deal was canceled.
Derive representatives noted that the decision was made after 'thorough discussions and consideration of community opinion.' The main concerns revolved around the token exchange ratio, the three-month lock-up period, and the absence of restrictions on the issuance of new Synthetix tokens. Participants in the Derive community also pointed out that their platform generates more revenue than Synthetix, raising doubts about the fairness of the valuation.
Both platforms will now focus on independent development. Synthetix will continue to build decentralized derivatives on Ethereum, while Derive will seek alternative strategies to expand its products.
#defi #Synthetix #Derive #CryptoNews #Blockchain
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