Ethena and Derive Announce Strategic Partnership to Enhance Liquidity and Growth
DeFi protocol Ethena has unveiled a new partnership with Derive.xyz, a leading on-chain options and structured products platform, aimed at boosting liquidity and fostering growth for both ecosystems. The collaboration includes a multi-million-dollar investment to support these initiatives, according to a press release shared with CoinDesk on Tuesday.
Partnership Details
Under the agreement, Ethena will integrate Derive’s suite of trading tools, including basis trading, options, futures, and vaults. These will leverage Ethena’s USDe stablecoin and staked USDe (sUSDe) to enhance trading volume and liquidity. Ethena plans to initiate basis trading on Derive’s perpetual markets, subject to approval from the Ethena Risk Council. This move is expected to improve liquidity on Derive, enabling users to execute large orders at more stable prices.
Additionally, the Lyra Foundation, which oversees the Derive protocol, will receive a multi-million-dollar grant from the Ethena Foundation. As part of this collaboration, staked ENA (sENA) holders will be rewarded with 5% of the DRV tokens granted to Ethena. ENA serves as the governance token for the Ethena ecosystem.
Leaders Highlight Collaboration Benefits
Nick Forster, founder of Derive.xyz, emphasized the significance of the partnership, stating:
“Integrating Ethena’s immense liquidity and strong user base with Derive.xyz’s unparalleled derivatives protocol not only unlocks significant opportunities for Derive.xyz users but also positions it as the premier on-chain derivatives platform. Together, we are setting new standards in DeFi, offering innovative solutions that cater to both retail and institutional traders.”
Forster also hinted at the transformative potential of the collaboration, describing it as the foundation for the “next generation of groundbreaking on-chain derivatives, liquidity, and financial products.”
New Features for Users
As part of the partnership, Derive will integrate Ethena’s USDe stablecoin as collateral. This will allow users to trade derivatives while earning passive yields. USDe is a synthetic dollar that maintains its $1 peg through a hedged cash-and-carry (basis trading) strategy.
In addition, Derive will launch new vaults for staked USDe (sUSDe) holders. These vaults combine Ethena’s staking yields with Derive’s structured product strategies, enabling users to maximize their rewards.
Current Ecosystem Highlights
Ethena currently boasts a total value locked (TVL) exceeding $4 billion, with over 300,000 users and integrations with major centralized exchanges such as Deribit and ByBit.
Meanwhile, Derive, with a TVL of $79 million, is the largest decentralized protocol offering programmable on-chain options, perpetuals, and structured products. The platform’s native token, DRV, is set to go live on January 15, according to a protocol spokesperson.
This partnership positions both Ethena and Derive to set new benchmarks in the decentralized finance space, offering enhanced tools and opportunities for users across the ecosystem.
