Ethena, a major player in the decentralized finance (DeFi) space, has formed a strategic partnership with Derive.xyz, a leading on-chain derivatives platform. This collaboration is set to improve liquidity, drive growth, and offer additional rewards for users across both platforms. The partnership involves a substantial multi-million dollar investment aimed at boosting both ecosystems.
Key Details of the Partnership
As part of the partnership, Ethena will integrate Derive’s range of products, such as options, futures, and basis trading, into its platform. By leveraging Ethena’s USDe stablecoin and staked USDe (sUSDe), this collaboration will significantly increase liquidity and trading volume. The integration aims to allow users to execute large trades at stable prices, enhancing the trading experience on Derive’s markets.
Ethena is also set to introduce basis trading on Derive’s perpetual markets, subject to approval by the Ethena Risk Council. This move will increase liquidity and provide better pricing stability for traders on the Derive platform.
Enhanced Rewards for Stakers and Increased Liquidity
In addition to the product integration, the Lyra Foundation, which oversees the Derive protocol, will receive a multi-million dollar grant from the Ethena Foundation. Additionally, staked ENA token holders (sENA) will be rewarded with 5% of the DRV tokens that were granted to Ethena. This reward structure aims to incentivize continued participation and support for both platforms.
Nick Forster, Founder of Derive.xyz, emphasized that this partnership combines Ethena’s liquidity and Derive’s derivatives products to create significant opportunities for both retail and institutional traders. He expressed confidence that this collaboration will set new standards for DeFi markets by providing cutting-edge financial products.
New Features: Passive Yield and Collateral Opportunities
Derive will also integrate Ethena’s USDe stablecoin as collateral, enabling users to trade while earning a passive yield. USDe is a synthetic dollar, backed by a hedged strategy to maintain a stable $1 peg, making it a reliable option for collateral on Derive’s platform. Additionally, users can stake USDe (sUSDe) in Derive’s vaults, combining Ethena’s staking rewards with Derive’s structured products to maximize returns.
Positive Outlook for Both Platforms
Ethena continues to solidify its position in the DeFi sector with over $4 billion in total value locked (TVL) and more than 300,000 users. The platform has also integrated with major centralized exchanges like Deribit and ByBit, further expanding its reach.
Meanwhile, Derive, with a TVL of $79 million, remains the largest decentralized protocol for on-chain options and structured products. The upcoming launch of the DRV token in January 2024 is expected to bring even more liquidity and user engagement to the platform.
The partnership between Ethena and Derive marks a significant step forward in the DeFi space, providing users with enhanced liquidity, innovative products, and additional earning opportunities. This collaboration is expected to redefine the landscape of decentralized derivatives and financial products.
