Ethena Partners with Derivatives Protocol Derive, Offering 5% of DRV Tokens to sENA Holders

Anna Martynova

DeFi protocol Ethena announced on Tuesday a new partnership with Derive.xyz, the world’s leading on-chain options and structured products platform, that will invest millions of dollars to increase liquidity and drive growth for both protocols. As part of the partnership, Ethena will integrate Derive’s core trading, options, futures, and vaults, using Ethena’s USDe stablecoin and USDE staking to increase liquidity and trading volume, according to a press release.

Ethena will launch its core trading on Derive’s perpetual markets, pending approval from the Ethena Risk Council. This is expected to increase volumes and liquidity on Derive, strengthening Derive users’ ability to execute large orders at stable prices. In this regard, the Lyra Foundation, which oversees the Derive protocol, will receive a multi-million dollar grant from the Ethena Foundation, and staked ENA (sENA) holders will be rewarded with 5% of the DRV tokens provided by the Ethena Foundation. The ENA token is the governance token for the Ethena ecosystem.

Derive said it will integrate USDe as collateral, allowing users to trade while earning passive income. Ethena’s USDe is a synthetic dollar that uses a hedged cash-and-carry strategy. The on-chain derivatives protocol will also debut vaults for staked USDe (sUSDe) holders, allowing them to accumulate rewards by combining Ethena staking yields with Derive’s structured product strategies.

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