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Synthetix, a leading decentralized finance (DeFi) protocol, has announced a proposal to acquire the decentralized options platform Derive. The deal, valued at approximately $27 million, involves a token swap of 29.3 million SNX tokens, which will be subject to a lock-up and vesting period.

Synthetix’s Acquisition Proposal

On May 14, Synthetix revealed its plan to acquire Derive, a former project within its ecosystem. This proposal, outlined in SIP-415, is currently under review by Synthetix’s governing DAO, the Spartan Council, and Derive’s governance team. If approved, the acquisition will integrate Derive’s technology and team into Synthetix’s core operations.

According to the proposal, the token swap will follow a structured ratio of 27:1, meaning that for every 27 DRV tokens, holders will receive 1 SNX token. These newly issued SNX tokens will undergo a three-month lock-up period, followed by a nine-month linear vesting schedule.

Details of the Token Swap

To execute the deal, Synthetix plans to mint 29.3 million new SNX tokens, pegged at a valuation of $27 million. This acquisition is expected to bolster Synthetix’s position as a premier perpetuals trading engine on the Ethereum mainnet by leveraging Derive’s capabilities.

“This acquisition accelerates Synthetix’s push towards a leading Ethereum mainnet perps engine, by integrating Derive’s capabilities and team into the core protocol,” stated the protocol in its announcement.

Market Impact of SNX

SNX, the native token of Synthetix, has experienced a strong rally over the past week, climbing more than 45%. As of May 14, the token reached $0.96, nearing the $1 milestone after a nearly 50% surge over the past month. The token’s market capitalization currently stands at $316 million, with daily trading volumes seeing a modest 1% increase in the past 24 hours.

Strategic Benefits of the Derive Acquisition

The acquisition of Derive could pave the way for Synthetix to launch its own dedicated derivatives exchange. By acquiring Derive’s team and technology, which includes support for CLOB perpetuals with on-chain settlement acceleration, Synthetix aims to enhance its ecosystem significantly.

This move positions Synthetix to compete with major derivatives platforms such as dYdX, Deribit, and Binance. The integration of Derive’s infrastructure is expected to expand Synthetix’s range of offerings and attract more users to its platform.

Reuniting the Ecosystem

Kain Warwick, the founder of Synthetix, emphasized that this acquisition aligns with the protocol’s strategy of consolidating projects that originated within its ecosystem. Warwick described Derive as “born from the same DNA” since it initially emerged under the name Lyra, a Synthetix-affiliated project.

“Reuniting under one banner simplifies our architecture and governance and unlocks the next phase. This is the kids going out to build their own successful start-ups, and coming back to join the family business,” said Warwick.

Synthetix has previously acquired other projects from its ecosystem, including Kwenta, a perpetual futures platform, and TLX, a token leveraging project. The addition of Derive further strengthens Synthetix’s ambition to create a unified and robust DeFi ecosystem.

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