The DeFi platform for synthetic assets, Synthetix, and the decentralized options protocol, Derive (formerly Lyra), have abandoned their $27 million merger deal.
The SIP-415 and DIP proposals to merge Synthetix and Derive have been mutually withdrawn following thoughtful discussion and community feedback.
This moment reaffirms our independent path and the community’s belief in it.
Derive operations remain uninterrupted. Trading is live,… https://t.co/Uf5DmZNME5
— Derive (@derivexyz) May 21, 2025
“The decision was made after discussions and community feedback,” explained Derive.
According to the initial plan, Synthetix intended to reintegrate Derive through a token swap of DRV for SNX at a ratio of 27:1.
The deal required the issuance of 29.3 million SNX, raising concerns about the potential devaluation of existing tokens.
Both parties had formalized respective protocol improvement proposals.
Critics noted that Derive, whose revenue in recent weeks surpassed that of Synthetix, was undervalued in the deal. With the first project valued at $27 million, the market capitalization of the second stands at $1.1 billion. Participants also described the exchange terms as “unfair” to DRV holders.
Synthetix had planned to integrate Derive’s developments into its Perps V4 derivatives platform but will now seek alternatives. The partner, in turn, announced the continuation of its independent development.
In May, online broker Robinhood finalized an agreement to acquire the Canadian crypto company WonderFi, with assets under management of $1.5 billion.
Currently, the largest acquisition in the industry for 2025 is the purchase of the crypto derivatives platform Deribit for $2.9 billion by the exchange Coinbase.