A proposed $27 million acquisition between decentralized derivatives projects Synthetix and Derive has been shelved, following mounting criticism

A proposed $27 million acquisition between decentralized derivatives projects Synthetix and Derive has been shelved, following mounting criticism from token holders and community members on both sides.
The two teams floated a plan in mid-May that would have seen Synthetix absorb Derive — formerly known as Lyra — in a token swap deal that consolidates their technologies and treasuries. The move was set to bring Derive’s decentralized options platform into Synthetix’s ecosystem on Ethereum mainnet, with Synthetix minting 29.3 million new SNX tokens to fund the buyout.
The proposal was formalized through governance channels — SIP-415 and DIP — but both were withdrawn this week.
“The SIP-415 and DIP proposals to merge Synthetix and Derive have been mutually withdrawn after thoughtful discussion and community feedback,” Derive’s team wrote in an update.
Under the deal, Derive would have been valued at $27 million, based on a 27:1 token swap ratio of DRV for SNX. But that valuation quickly drew fire from Derive’s community, especially as the protocol had recently been generating more revenue than Synthetix. Some critics argued that the terms undervalued Derive’s growth and momentum relative to Synthetix’s current market cap.
Synthetix hoped to integrate Derive’s infrastructure into its upcoming Perps V4 launch, which centers on a centralized limit order book built on Ethereum. With the deal off, Synthetix will have to seek other ways to bolster its derivatives offering.
Synthetix strategy lead Ben Celermajer said the three-month token lock-up and the pricing of the deal were among the main sticking points. The team tried to ease concerns by waving the lock-up for smaller DRV holders, but it wasn’t enough.
Synthetix says it’s still committed to building a decentralized derivatives stack on Ethereum, but for now, Derive won’t be part of it.
Opposition from Derive’s community was vocal and detailed. On Derive’s forum, users questioned the fairness of the 27:1 token exchange, with one contributor calling it the equivalent of “selling the bottom.”
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