The Largest Options Protocol Has Joined the Ethena Network Family

Derive, the largest on-chain options protocol, is partnering with Ethena and aligning with the Ethena Network. This is an extension of Ethena’s existing relationship with Derive. Derive has established sUSDe as collateral on Derive and built the first on-chain structured product for sUSDE. As part of this partnership, the Ethena Foundation has provided a multi-million dollar grant to Derive.

USDe is an incredibly powerful tool for builders to unlock new financial primitives, bringing support from Ethena's liquidity, integrations funnel, and network effect. We’re excited to see more of the best builders like Derive building on top of Ethena products.

sENA holders will also be eligible to align with Derive DAO, receiving 5% of the DRV token supply.

Derive Today

Derive (formerly Lyra) is the premier options protocol, with over 75% of the on-chain market for options on chain and the market leader in advanced structured products. Derive also supports perpetual futures and structured products, which intakes assets from protocols such as Ethena, Ether.fi, and Lombard Finance.

A market leader, Derive drives ~$250 million worth of volume weekly across over 50,000 users and over $80 million in TVL.

Derive is the leading on-chain derivatives platform, offering trustless options, perpetuals, spot trading, and borrowing. Providing advanced tools for on-chain wealth creation and seamless functionality, Derive empowers users to trade, innovate, and build wealth with unparalleled freedom and precision.

They’re set to continue to remain a market leader as more users flow on-chain and DeFi innovation continues to favor composable financial products like those that Derive provides. We’re excited to work closely with them as they continue to own the on-chain options market.

We’re especially excited about Derive due to their team and experience.

Just as two examples: one co-founder Nick prior worked at Susquehanna in their options division, and another co-founder Mike co-authored the Synthetix (Havven) whitepaper with Kain Warwick and was deeply involved there before Lyra. We know them to be both good people but also know their dedication to building the vision of the best on-chain derivatives experience.

Derive has been backed by Framework Ventures, ParaFi Capital, AllianceDAO, along with founders like Kain and Jordan from Synthetix, Bryan from LayerZero, DCFGod, Mike and ROK from Ether.fi, along with many others. Disclaimer: Guy, founder of Ethena, is also a small angel investor.

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Derive leverages Ethena and the unique economic properties USDe and sUSDe present.

sUSDe can be used as collateral on Derive, allowing users to earn significant rewards while expressing views on BTC, ETH, SOL, amongst other assets. Derive has also built a structured product vault for sUSDe, which allows users to earn additional rewards on top of the over 17.5% annualized rewards.

Through this partnership, we’re excited to continue to work with Derive to continue to push the envelope of on-chain derivatives and liquidity, made even more powerful by the highly-composable USDe and by Ethena liquidity.

Expect additional integrations with Ethena products, bringing additional utility for USDe holders, sUSDe stakers, and ENA holders.

Just as Ethena products empower users on centralized venues, so too will Ethena products power on-chain finance.

DRV Alignment

The Ethena Foundation has made a multi-million dollar grant to Derive, and in return sENA will be availed of the opportunity to participate in Derive DAO to the tune of 5% of the DRV token supply.

Starting today, in addition to the Ethereal Points currently being distributed, sENA will begin to earn Derive Points from the Ethena Foundation.

Opportunities for Ethena Users

With this partnership, Derive will implement USDe as collateral on its perp DEX, allowing users to get 20x Sats alongside using USDe as collateral. Those that deposit a minimum of $10,000 USDe and reach a minimum threshold of trading volume will be eligible to get a significant number of points from Derive.

Users today can deposit sUSDe into Derive as well as collateral and get a 5x Sats boost, along with a 5x Sats boost on their sUSDe structured product vault.

Go check out Derive’s socials and app for more details!

Working With the Best Builders

Derive represents the second project joining the Ethena Network. Ethereal, an Ethena-first perpetuals DEX being built by established DeFi builders, was the first.

The Ethena Network is a synergistic win-win-win initiative between Ethena, builders, and users that drives USDe adoption forward while empowering builders by improving protocol economics and go-to-market strategy.

We’re proud to be joined in the Network by talented builders like the Ethereal and Derive contributors. This moves toward a world where the Ethena Network is the platform that powers the best apps, networks, and builders of the on-chain future.

As mentioned in the blog introducing Ethena Network, the Ethena Foundation is actively looking for teams to join us on this journey.

If you’re a builder interested in joining the Ethena Network, please reach out to us here! We will shortly be sharing more information about core improvements to DeFi primitives that can be enabled by USDe, sUSDe, and Ethena.