Synthetix and Derive contributors mutually withdrew proposals for a $27 million deal in which Synthetix would acquire Derive (formerly Lyra), a decentralized options platform.
In mid-May, Synthetix proposed to acquire Derive’s treasury, technology, and product suite through a token swap to merge the two platforms into a unified derivatives protocol on the Ethereum mainnet.
Both sides formalized the proposal as a Synthetix Improvement Proposal (SIP-415) and a corresponding Derive Improvement Proposal (DIP). Derive announced that these have now been canceled.
“The SIP-415 and DIP proposals to merge Synthetix and Derive have been mutually withdrawn after thoughtful discussion and community feedback,” the team at Derive noted.
The deal valued Derive at $27 million, with a token swap ratio of 27 DRV (Derive’s token) for 1 SNX (Synthetix’s token). Synthetix planned to mint 29.3 million new SNX tokens for the acquisition.
Later, Derive community members criticized the deal and argued that Derive’s higher revenue in recent weeks compared to Synthetix did not justify the acquisition or the proposed valuation.
Critics also argued that Derive’s higher revenue than Synthetix suggested it was massively undervalued at $27 million compared to Synthetix’s market cap. Furthermore, Synthetix’s plan to issue 29.3 million SNX tokens, which implied a dilution of SNX’s value for its holders, also received some criticism.
Synthetix intended to leverage Derive’s expertise for its Perps V4 product, a derivatives platform with a centralized limit order book on Ethereum, but will now explore other options to strengthen its ecosystem offerings. With the deal now off, Derive said the development reaffirmed its independent trajectory.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
