Derive is getting set to launch its native DRV token on January 15, 2025.
DeFi protocol Ethena has teamed up with top on-chain derivatives platform Derive.xyz, hoping to deliver improved liquidity while also driving growth for both protocols. Ethena noted this in a Tuesday announcement, where it shared that the partnership deal involves investments to the tune of millions of dollars.
According to the firm, this is a win-win situation for not just the partners alone but also their communities.
Mutual Benefits for Ethena, Derive, and Their Users
Derive comes to the table with its advanced trading tools such as options, futures, and structured product vaults. So, Ethena will want to incorporate these into its own operations. Similarly, Derive will hope to attend to its liquidity and trading volume using Ethena’s synthetic dollar stablecoin USDe $1.00 24h volatility: 0.0% Market cap: $5.26 B Vol. 24h: $118.98 M and staked USDe (sUSDe) as leverage.
As a result of this partnership, Ethena is gearing up for basis trading on Derive’s perpetual markets. Although pending approval from The Ethena Risk Council, this is expected to ensure stable prices for large orders.
Meanwhile, it might be worth noting that Ethena’s collaboration extends beyond trading integration. As part of the agreement, The Lyra Foundation, which governs Derive, will receive a substantial grant from the Ethena Foundation.
On the other hand, holders of staked ENA (sENA) will also enjoy 5% of Derive’s native DRV token supply as reward.
For users, the benefits of this partnership come in quite a unique style. First, Derive will adopt USDe as collateral. This means that traders can earn passively even while engaging in transactions. Additionally, the partners are floating vaults for sUSDe holders. This has been done in a way that combines staking yields with structured product strategies to maximize rewards.
Forward Plans
Sharing his delight in the new partnership, Nick Forster, Founder of Derive.xyz, says this is a rare opportunity for the platform and its users. Part of his statement reads:
“Integrating Ethena’s immense liquidity and strong user base with Derive.xyz’s unparalleled derivatives protocol… positions it as the premier on-chain derivatives platform.”
Forster’s excited commentary comes as Derive prepares to launch its native DRV token on January 15, 2025.
For what it’s worth, both platforms currently boast significant user bases, maybe one more than the other. However, this newfound friendship will aim to maximize their individual strengths to change the face of the DeFi space.
The partners are confirming that users may expect them to offer unique liquidity levels, trading efficiency, as well as new opportunities for traders to earn passive income.
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