Ethena, a decentralized finance (DeFi) protocol, has formed a strategic partnership with Derive.xyz, an on-chain derivatives platform, to drive growth and liquidity across both ecosystems. The partnership includes a multi-million dollar investment and exciting new opportunities for users in both communities.
Key Features of the Partnership
As part of the collaboration, Ethena will integrate Derive’s extensive offerings, including options, futures, and basis trading, into its own ecosystem. By utilizing Ethena’s USDe stablecoin and its staked version (sUSDe), the platform aims to enhance liquidity and trading volumes on Derive’s markets, providing users with more stable prices and the ability to execute larger trades effectively.
This integration promises to bring a substantial boost to Derive’s liquidity, ensuring better order execution for users, especially in its perpetual markets. Moreover, Ethena’s users will be able to enjoy enhanced opportunities in basis trading, pending approval from the Ethena Risk Council.
Rewarding Stakers and Strengthening the Ecosystem
In addition to the liquidity integration, the Ethena Foundation is extending a generous grant to the Lyra Foundation, the entity behind Derive. As part of the deal, holders of staked ENA tokens (sENA) will receive 5% of the DRV tokens granted to Ethena. These tokens are a part of Derive’s native token launch, scheduled for January 15. This move aligns the interests of both platforms, rewarding loyal participants and encouraging deeper engagement across the network.
Nick Forster, Founder of Derive, emphasized the transformative potential of the partnership, stating that combining Ethena’s liquidity with Derive’s advanced derivatives protocols will offer unique opportunities to both retail and institutional traders. Forster highlighted the significance of the integration in setting new standards for on-chain derivatives and financial products in DeFi.
Introducing New Collateral and Earning Opportunities
Derive is also enhancing its offering by integrating Ethena’s USDe as collateral, enabling users to trade while simultaneously earning passive yield. USDe is a synthetic dollar that leverages a hedged cash-and-carry strategy to maintain its $1 peg. Additionally, Ethena users can stake USDe (sUSDe) within Derive’s vaults, which combine Ethena’s staking yields with Derive’s structured products to offer even greater rewards.
The Path Ahead for Both Platforms
Ethena has made significant strides in the DeFi space, with over $4 billion in total value locked (TVL) and over 300,000 active users. Its collaborations with major centralized exchanges, including Deribit and ByBit, further solidify its position in the market.
Meanwhile, Derive, with a TVL of $79 million, is leading the way as the largest decentralized protocol in the world offering programmable on-chain options and perpetual contracts. The launch of its DRV token in January is expected to drive even more engagement and liquidity to its platform.
This partnership between Ethena and Derive signals an exciting future for the DeFi ecosystem, with new opportunities for both platforms’ users to benefit from enhanced liquidity, innovative financial products, and increased rewards.
