Ethena and Derive Partner to Redefine On-Chain Liquidity and Derivatives

DeFi protocol Ethena has entered into a groundbreaking partnership with Derive.xyz, a leader in on-chain options and structured financial products. Announced Tuesday, the collaboration includes a multi-million-dollar investment aimed at expanding liquidity and driving innovation for both platforms.

Expanding Trading Capabilities

As part of the partnership, Ethena will leverage Derive’s advanced trading tools—such as options, futures, and structured vaults—using its USDe stablecoin and staked USDe (sUSDe). Pending approval by the Ethena Risk Council, the protocol will launch basis trading on Derive’s perpetual markets. This integration is expected to enhance liquidity on Derive and enable traders to execute larger transactions with minimal price disruption.

In support of the partnership, the Ethena Foundation has committed a multi-million-dollar grant to the Lyra Foundation, which oversees Derive. Additionally, staked ENA (sENA) holders will receive 5% of the DRV tokens allocated to Ethena as part of the collaboration. ENA, the governance token for Ethena, plays a critical role in decision-making across its ecosystem.

A Vision for Growth

Nick Forster, founder of Derive.xyz, emphasized the transformative potential of the collaboration:

“This partnership brings together Ethena’s unmatched liquidity with Derive.xyz’s state-of-the-art derivatives platform. The result is a powerful synergy that benefits users across both ecosystems, creating a seamless and innovative DeFi experience.”

Forster highlighted the partnership’s broader implications for DeFi, describing it as a catalyst for the “next wave of liquidity solutions, derivatives products, and financial innovation.”

Enhanced Features for Users

Derive will integrate Ethena’s USDe stablecoin as a collateral option, enabling users to trade derivatives while simultaneously earning passive yield. USDe maintains its $1 peg through a robust cash-and-carry (basis trade) strategy, ensuring stability and reliability.

In addition, Derive will introduce new vaults tailored for sUSDe holders. These vaults allow users to combine Ethena’s staking rewards with Derive’s structured products, maximizing potential earnings and delivering a more dynamic user experience.

A Combined Ecosystem with Global Reach

Ethena currently commands over $4 billion in total value locked (TVL) and serves a user base exceeding 300,000. The protocol is deeply integrated with leading centralized exchanges like Deribit and ByBit.

Derive, with a TVL of $79 million, stands as the largest decentralized platform for on-chain options, perpetuals, and structured products. Its native DRV token is set to launch on January 15, marking a pivotal step in the platform’s growth.

Looking Ahead

This partnership between Ethena and Derive represents a bold move toward reshaping decentralized finance. By combining Ethena’s liquidity expertise with Derive’s derivatives innovation, the collaboration is set to redefine on-chain trading and unlock new opportunities for both retail and institutional participants.