Ethena Announces Strategic Partnership with Derive.xyz, Expanding On-Chain Derivatives Ecosystem
Staff Writer • 2024-12-03
Lisbon, Portugal – Ethena, the protocol behind USDe, the fourth-largest USD-denominated crypto asset, has announced a transformative partnership with Derive.xyz, the world’s largest on-chain options and structured products protocol. This multi-million-dollar collaboration marks a significant milestone in Ethena’s mission to advance DeFi innovation and provide unparalleled opportunities for its users. Under the agreement, sENA holders will receive a 5% share of Derive.xyz’s governance token (DRV) via an airdrop, creating immediate value for the Ethena community. The partnership also includes plans for Derive.xyz to explore the creation of the first ENA options market and the integration of USDe as collateral, enhancing capital efficiency and liquidity for Ethena’s user base. Unlocking Opportunities with On-Chain Derivatives Derive.xyz, which commands over 75% of the on-chain options market for BTC and ETH, will be the second major project to integrate with the Ethena Network, following Ethereal, its integrated spot and perpetual futures decentralized exchange. This partnership will allow Ethena users to access Derive.xyz’s advanced structured product vaults and perpetual futures platform, enabling them to generate additional yield on their holdings. At the same time, Derive.xyz will benefit from Ethena’s vast liquidity pool and network to expand its market-leading derivatives ecosystem. Driving Innovation in DeFi With over $4 billion in total value locked (TVL) and 300,000 users across centralized and decentralized platforms, Ethena has become a cornerstone of the DeFi landscape. This collaboration with Derive.xyz further solidifies Ethena’s role as an incubator and launchpad for pioneering projects. “We’re proud of the opportunity to power the largest on-chain options protocol, unlocking new financial primitives around USDe,” said Guy Young, Founder of Ethena. “Our partnership with Derive.xyz exemplifies how USDe can revolutionize liquidity, capital efficiency, and user acquisition in DeFi and CeFi markets.” Derive.xyz, co-founded by Nick Forster, has processed $7.1 billion in total trade volume and boasts a TVL of $79 million. Its innovative derivatives protocol offers users programmable, on-chain options and perpetuals, setting the standard for automated strategies to grow and preserve wealth. Expanding Horizons for ENA and USDe This partnership will drive the development of structured products leveraging Ethena’s sUSDe rewards and expand use cases for ENA options markets. The collaboration aims to establish Derive.xyz as the premier on-chain derivatives platform, offering retail and institutional traders innovative tools for managing risk and liquidity. “By combining Ethena’s liquidity and user base with our derivatives protocol, we’re setting new standards in DeFi,” said Nick Forster, Founder of Derive.xyz. “Together, we are shaping the future of on-chain derivatives and financial products.”
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