Ethena and Derive Forge Strategic Alliance to Advance DeFi Liquidity and Derivatives
Ethena, a prominent decentralized finance (DeFi) protocol, has announced a strategic partnership with Derive.xyz, a leader in on-chain options and structured products. This collaboration, revealed Tuesday, includes a multi-million-dollar investment to bolster liquidity and accelerate growth for both platforms.
Unlocking Liquidity and Growth Opportunities
Through this partnership, Ethena will integrate Derive’s robust trading features—such as basis trading, options, futures, and vaults—leveraging its USDe stablecoin and staked USDe (sUSDe). Pending approval by the Ethena Risk Council, the integration will enable basis trading on Derive’s perpetual markets. This move is expected to enhance trading volumes and liquidity while allowing Derive users to place large trades with stable pricing.
As part of the agreement, the Ethena Foundation will provide a multi-million-dollar grant to the Lyra Foundation, which oversees Derive’s operations. Additionally, staked ENA (sENA) holders will benefit from the allocation of 5% of the DRV tokens distributed to Ethena. The ENA governance token empowers Ethena users to participate in protocol decision-making.
Driving Innovation in DeFi
Nick Forster, founder of Derive.xyz, highlighted the potential of the partnership:
“By combining Ethena’s extensive liquidity network with Derive.xyz’s cutting-edge derivatives platform, we are creating a new paradigm in decentralized finance. This collaboration offers unprecedented opportunities for our users and reinforces Derive.xyz’s position as a market leader.”
Forster further described the partnership as a step toward offering innovative financial products tailored to both retail and institutional audiences, setting a higher standard in DeFi.
New Features for Traders and Investors
Derive will incorporate Ethena’s USDe stablecoin as a collateral option, enabling users to trade derivatives while earning passive yield. USDe, a synthetic dollar, maintains its $1 peg through a hedged cash-and-carry (basis trade) strategy.
Derive is also launching structured vaults for sUSDe holders, providing a unique opportunity to combine Ethena’s staking yields with Derive’s innovative financial strategies. This integration aims to maximize rewards and deliver a superior user experience.
Strengthening Ecosystem Metrics
Ethena boasts a total value locked (TVL) of over $4 billion and serves more than 300,000 users worldwide. The protocol is seamlessly integrated with major centralized exchanges, including Deribit and ByBit.
Meanwhile, Derive, with a TVL of $79 million, is the largest decentralized protocol for programmable on-chain options, perpetuals, and structured products. The launch of its native token, DRV, is scheduled for January 15, marking a significant milestone in its roadmap.
A Shared Future in DeFi
This partnership between Ethena and Derive marks a pivotal moment in the evolution of DeFi. By combining their strengths, the two platforms aim to redefine on-chain derivatives, liquidity solutions, and financial innovation, paving the way for the next generation of decentralized trading and investment opportunities.
