Ethena Partners with Derive to Enhance Liquidity and Trading Efficiency
DeFi protocol Ethena has partnered with on-chain derivatives platform Derive.xyz to enhance liquidity and drive growth for both entities. The partnership involves investments totaling millions of dollars, as noted in a Tuesday announcement.
Mutual Benefits for Ethena, Derive, and Their Users
Derive offers advanced trading tools including options, futures, and structured product vaults, which Ethena plans to integrate. Derive aims to enhance its liquidity and trading volume by utilizing Ethena’s synthetic dollar stablecoin #USDe and staked USDe (sUSDe) as leverage.
Ethena is preparing for basis trading on Derive’s perpetual markets, pending approval from The Ethena Risk Council, which will help stabilize prices for large orders.
The collaboration also includes a grant from the Ethena Foundation to The Lyra Foundation, which governs Derive. Holders of staked ENA (sENA) will receive 5% of Derive’s native DRV token supply as rewards.
For users, the partnership allows Derive to accept USDe as collateral, enabling traders to earn passively during transactions. Additionally, vaults for sUSDe holders will combine staking yields with structured product strategies to optimize rewards.
Forward Plans
Nick Forster, Founder of Derive.xyz, expressed enthusiasm about the partnership, stating that integrating Ethena’s liquidity and user base with Derive’s derivatives protocol positions it as a leading on-chain derivatives platform. Derive plans to launch its native DRV token on January 15, 2025.
Both platforms have substantial user bases and aim to leverage their strengths to impact the DeFi sector positively, promising unique liquidity levels, trading efficiency, and new passive income opportunities for traders.