Key Takeaways:
Synthetix and Derive have mutually agreed to cancel a $27 million token swap deal following pushback from their respective communities. Derive users voiced their concerns over the proposed valuation and the potential dilution of SNX holders’ tokens. Both companies will continue their projects independently, with Synthetix considering other options for Perps V4 while Derive focuses on its individual roadmap.
The proposed acquisition, which would have facilitated a merger between two decentralized derivatives platforms through a token exchange, has been officially dropped. Initially presented in mid-May, the plan aimed for Synthetix to absorb Derive’s treasury, technology, and complete product offerings to unify their efforts on the Ethereum network.
This initiative was documented in governance proposals SIP-415 (Synthetix) and DIP (Derive), both of which have now been withdrawn due to community dissent and further internal evaluations.
Derive Cites Community Feedback in Decision to Abort the Deal
Derive, which was previously known as Lyra, made the decision to walk away from the deal, referencing “thoughtful discussion and community feedback” as pivotal in their choice. The terms of the proposed arrangement would have required Synthetix to mint 29.3 million SNX tokens, estimating Derive’s value at $27 million with a swap ratio of 27 DRV for every SNX.
However, pushback was significant, with members of the Derive community questioning the fairness of the valuation, particularly in light of Derive’s recent revenue growth that cast doubt on its perceived underestimation when compared to Synthetix. Furthermore, apprehensions were raised about the possible dilution effects on SNX holders, prompting a reevaluation of the situation.
Synthetix originally anticipated that the acquisition would enhance the forthcoming Perps V4 release, characterized by a centralized limit order book architecture on Ethereum.
The SIP-415 and DIP proposals to merge Synthetix and Derive have been mutually withdrawn following thoughtful discussion and community feedback.
This moment reaffirms our independent path and the community’s belief in it.
Derive operations remain uninterrupted. Trading is live,… https://t.co/Uf5DmZNME5
— Derive (@derivexyz) May 21, 2025
With the merger no longer on the table, both teams plan to refocus on separate strategies for enhancing their product offerings. Derive has reiterated its dedication to independent development, emphasizing its commitment to its own roadmap.
Synthetix Introduces New Staking Initiative to Restore sUSD Peg
In related news, Synthetix founder Kain Warwick has urged SNX stakers to engage with the newly established sUSD 420 Pool, a staking strategy designed to reestablish the sUSD stablecoin’s peg to the dollar. This initiative offers users a share of 5 million SNX tokens in exchange for locking up their sUSD for a year, aimed at decreasing the circulating supply of the token and stabilizing its value.
While the incentive is in place, Warwick acknowledged that the current process is still “very manual” and lacks an efficient user interface, which is presently under development. He cautioned that if engagement remains low even after the rollout of the new interface, the team may need to consider more forceful measures to address the issue.
sUSD, a stablecoin collateralized by crypto and backed by SNX, has faced challenges maintaining its value, recently dipping to $0.68 before rising again to $0.77. Warwick stressed that the answer lies within the SNX community, whose collective resources could be pivotal in resolving this challenge.
The initiative is part of SIP-420, which also seeks to redistribute debt risks from stakers back to the protocol.
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