Ethena Partners with Derive, Offering sENA Holders Access to 5% of DRV Token Supply.

Ethena Partners with Derive.xyz to Revolutionize On-Chain Derivatives and Liquidity

Ethena, a leading decentralized finance (DeFi) protocol, announced a strategic partnership with Derive.xyz, an on-chain options and structured products platform, to drive liquidity growth and innovation across both ecosystems. The partnership, unveiled Tuesday, includes a multi-million-dollar investment designed to enhance the functionality and user experience of both platforms, according to a press release shared with CoinDesk.

Collaboration to Enhance Liquidity and Trading Volume

The partnership will see Ethena integrate Derive’s advanced trading features, including basis trading, options, futures, and vaults, all powered by Ethena’s USDe stablecoin and staked USDe (sUSDe). Pending approval from the Ethena Risk Council, basis trading will launch on Derive’s perpetual markets, a move expected to significantly boost liquidity and trading volumes. This enhancement will improve the ability of Derive users to execute larger trades with stable pricing.

As part of the deal, the Lyra Foundation, which governs the Derive protocol, will receive a multi-million-dollar grant from the Ethena Foundation. Additionally, staked ENA (sENA) holders will benefit from the partnership, as 5% of the DRV tokens allocated to Ethena will be distributed to them. ENA is Ethena’s governance token, underpinning the ecosystem’s decision-making process.

Shared Vision for Innovation

Nick Forster, the founder of Derive.xyz, expressed enthusiasm for the partnership, emphasizing the synergy between the two platforms:

“Ethena’s liquidity strength and loyal user base combined with Derive.xyz’s cutting-edge derivatives technology unlock transformative opportunities for traders. Together, we are reshaping the DeFi landscape with innovative tools that cater to both retail and institutional participants.”

Forster added that the collaboration represents the “next frontier” of on-chain derivatives and liquidity solutions, pushing the boundaries of decentralized finance.

New Features for Derive and Ethena Users

A key feature of the partnership is the integration of Ethena’s USDe stablecoin as collateral within Derive’s ecosystem. This will allow users to trade while earning passive income. USDe maintains its $1 price peg through a hedged cash-and-carry strategy and serves as a critical tool for enhancing liquidity.

Derive is also rolling out vaults for sUSDe holders, enabling them to maximize rewards by combining Ethena’s staking yields with Derive’s structured product strategies. This integration promises greater earning potential for users who participate in both ecosystems.

Strengthening the Ecosystem

Ethena’s platform currently holds over $4 billion in total value locked (TVL) and serves a community of more than 300,000 users. It has established integrations with major centralized exchanges, including Deribit and ByBit.

Derive, on the other hand, boasts a TVL of $79 million, making it the largest decentralized platform for programmable on-chain options, perpetuals, and structured products. The protocol’s native token, DRV, is set to launch on January 15, marking a significant milestone for its ecosystem.

Looking Ahead

This partnership represents a bold step toward redefining DeFi by combining the liquidity and user reach of Ethena with Derive’s advanced derivatives capabilities. Together, the two platforms aim to create a seamless, innovative trading experience while setting new industry standards in decentralized finance.