Chiara Bianchi
A proposed $27 million acquisition deal between Synthetix and Derive has been officially scrapped, following extensive community feedback and internal deliberations. The move halts plans to merge the two decentralized finance (DeFi) protocols into a unified Ethereum-based derivatives platform.
In May, Synthetix introduced a proposal to acquire Deriveโs treasury, technology, and product lineup through a token swap, which would merge both platforms under a single DeFi umbrella. The plan was outlined in Synthetix Improvement Proposal 415 (SIP-415) and a parallel Derive Improvement Proposal (DIP).
However, both proposals have now been withdrawn, according to a statement from the Derive team:
โThe SIP-415 and DIP proposals to merge Synthetix and Derive have been mutually withdrawn after careful discussion and strong community input.โ
Community Criticism Challenged $27M Valuation
Under the terms of the original deal, Synthetix would have minted 29.3 million new SNX tokens to acquire Derive at a ratio of 27 DRV per 1 SNX. But the deal came under scrutiny, especially from the Derive community, who raised concerns about the fairness of the valuation.
Many community members pointed out that Derive had outperformed Synthetix in recent revenue metrics, arguing that the $27 million valuation undervalued Deriveโs market potential, especially when compared to Synthetixโs overall market cap.
Derive to Remain Independent After Deal Falls Through
Synthetix had hoped to integrate Deriveโs expertise to enhance Perps V4, its upcoming derivatives product designed for the Ethereum mainnet. The platform, which aims to offer centralized limit order book functionality within a decentralized system, may now need to seek alternative strategic partnerships.
Meanwhile, Derive confirmed it will continue to operate independently, with the decision to walk away from the merger reinforcing its long-term roadmap as a standalone DeFi protocol.
