Decentralized finance (DeFi) protocol Synthetix has revealed its plans to re-acquire Derive (formerly Lyra) in a proposed $27 million deal. For context, Derive originated as Lyra within the Synthetix ecosystem before spinning off to specialize in decentralized options markets in mid-2024.
Synthetix $27M Proposal
Under the terms known as “Synthetix Improvement Proposal 415,” the deal would exchange 27 Derive (DRV) tokens for one Synthetix (SNX) token. The ratio results in the issuance of up to 29.3 million new SNX tokens subject to a three-month lock-up and nine-month linear vesting schedule.
According to an official press release, Synthetic claims the transaction aims to reunify the two projects’ order-book perpetual trading technology. It believes the plan, if actualized, will foster development efforts under its governance framework. However, community votes from Synthetix Spartan Council and Derive’s governance body will determine its success.
Once approved, the on-chain transaction would transfer Derive’s treasury assets, intellectual property, smart contract systems, and developer teams into the Synthetix core. The final deal-sealing will provide the ground for the immediate deployment of Derive’s order-book perpetuals technology on the Ethereum network.
Showing his optimism in the proposal’s success, Kain Warwick, founder of the DeFi protocol, commented on the initiative, saying:
“Derive was born from the same DNA, reuniting under one banner simplifies our architecture and governance and unlocks the next phase. This is the kids going out to build their own successful start-ups, and coming back to join the family business.”
Synthetix Bags a Feat
DeFi history shows no precedent for a protocol buying back a business it previously spun out. Research across five years of deal activity shows that Synthetix is the only major project to do so. In November 2024, it re-acquired Kwenta, the perps trading front-end it had hived off three years earlier.
Other major mergers and acquisitions (M&A) in DeFi include Yearn Finance’s 2020 acquisition spree, which involved integrating entirely separate protocols, not spin-offs. Last month, Solana-based Magic Eden acquired Slingshot, a crypto trading platform known for its cross-chain swaps and user-friendly interface.
Meanwhile, the SNX token increased by more than 4% to trade over $0.96, reflecting investor optimism over the protocol. Nonetheless, it’s noteworthy that SNX has suffered a significant drawdown of over 96% from its February 2021 peak of $28.77. The DRV token, on the other hand, saw a loss of over 28% within a few hours following the announcement.
