Synthetix is considering buying options trading platform Derive in a token-for-token deal valued at $27 million

As derivatives protocol Synthetix moves to acquire options trading platform Derive in a token-for-token deal, members of both communities are less than impressed.

The proposal, SIP-415 on Synthetix and DIP on Derive, would see the latter’s treasury, codebase and operational stack absorbed into the protocol that gave it birth.

It comes after Derive announced it was shutting down support for Synthetix’s sUSD stablecoin and switching to GMX for liquidity.

The deal, which still needs to be approved by both communities, would see Derive (DRV) token holders receive 27 newly issued SNX tokens for each DRV they own. The tokens are subject to a three-month lockup and nine-month linear vesting schedule. Synthetix would mint up to 29.3 million SNX, amounting to roughly 8.6% inflation of its current token supply.

The proposal comes with a valuation of $27 million for Derive and is being pitched as part of Synthetix’s growing ecosystem.

Derive, originally Lyra, went live in 2021 and was spun out from Synthetix. It has previously moved away from the protocol, switching to GMX for liquidity, and launching its own perpetual futures product.

Earlier responses from the Derive community showed dissatisfaction with the idea.

“I don´t see any benefit for Derive on it,” one commenter said. “In the other hand (sic), it all looks great and advantageous for Synthetix.”

Another user took aim at the proposed valuations.

“That exchange rate is a poor reflection of the value of derive as a platform,” commenter ‘Ramjo’ said. “And then have the nerve to put a long vesting period on it AS WELL.”

DRV prices are down 20% in the past 24 hours, data on CoinGecko shows, while SNX is up 7%.