Ethena Partners with Derive to Enhance On-Chain Derivatives and Liquidity
Ethena, a leading decentralized finance (DeFi) protocol, has announced a new strategic partnership with Derive.xyz, the premier platform for on-chain options and structured products. The partnership, revealed on Tuesday, involves a multi-million-dollar investment aimed at boosting liquidity and accelerating growth for both protocols.
Expanding DeFi Trading Capabilities
As part of the collaboration, Ethena will integrate Derive’s advanced trading capabilities, including basis trading, options, futures, and vaults, using Ethena’s USDe stablecoin and staked USDe (sUSDe) to provide liquidity. Pending approval from the Ethena Risk Council, basis trading will be introduced on Derive’s perpetual markets, which is expected to improve liquidity and trading volumes while enabling users to execute large orders at more stable prices.
In addition, the Ethena Foundation will allocate a multi-million-dollar grant to the Lyra Foundation, which oversees the Derive protocol. Staked ENA (sENA) holders will also receive 5% of the DRV tokens allocated to Ethena, providing additional rewards to the Ethena community. ENA is the governance token that powers Ethena’s ecosystem.
Collaboration Unlocks New Opportunities
Nick Forster, founder of Derive.xyz, expressed enthusiasm about the partnership’s potential:
“By combining Ethena’s liquidity depth with Derive’s unparalleled derivatives technology, we are creating an exciting opportunity for both platforms. This partnership strengthens Derive.xyz’s position as the top decentralized derivatives platform, while offering innovative solutions for traders across the DeFi space.”
Forster highlighted that this partnership is not just about liquidity, but also about redefining the standards for DeFi trading by bringing together the best of both worlds: advanced trading features and deep liquidity.
New Features for Derive and Ethena Users
Derive will begin using Ethena’s USDe stablecoin as collateral, allowing users to trade derivatives while earning passive yield. USDe is a synthetic dollar, which ensures a stable $1 peg through a hedged cash-and-carry (basis trade) strategy.
Additionally, Derive will offer new vaults for staked USDe (sUSDe) holders, combining Ethena’s staking rewards with Derive’s structured financial products. This integration is designed to help users maximize their returns through a combination of staking yields and on-chain derivatives strategies.
Growing Ecosystem and Market Reach
Ethena is currently valued at over $4 billion in total value locked (TVL) and boasts over 300,000 users. The platform has established integrations with major centralized exchanges like Deribit and ByBit, increasing its reach and accessibility in the DeFi space.
Meanwhile, Derive, with a TVL of $79 million, has emerged as the world’s largest decentralized protocol for programmable on-chain options, perpetual contracts, and structured products. The protocol’s native token, DRV, is set to launch on January 15, further solidifying Derive’s position as a leading player in the DeFi space.
Looking Ahead
This strategic partnership between Ethena and Derive is poised to reshape the DeFi landscape by combining the strengths of both platforms. With enhanced liquidity, innovative trading solutions, and new product offerings, the collaboration is set to usher in the next generation of decentralized financial products and services.
