Ethena establishes multi-million dollar partnership with Derive.xyz: sENA holders to receive 5% share of Derive Token DRV

Ethena is excited to announce that it has entered into a new partnership agreement with Derive.xyz, the world’s largest on-chain options and structured products protocol, including a multi-million-dollar investment in Derive.xyz by Ethena.

The partnership will provide sENA holders with 5% of the DRV token supply, Derive.xyz’s governance token, via an airdrop allocated to sENA holders.

Additionally, Derive.xyz’s perpetual futures platform and structured product vaults will allow Ethena’s users to earn additional yield on their holdings.

Derive.xyz, which holds a share of over 75% of the on-chain options market for BTC and ETH, will be the second project to build on the Ethena Network, following Ethereal, an integrated spot & perpetual futures DEX.

Ethena’s partnership with Derive.xyz marks the latest step in its journey to establish itself as an incubator and launchpad for the projects that will underpin DeFi’s next chapter. The collaboration builds upon Ethena’s existing integrations across some of the largest protocols in DeFi, including Aave, ether.fi, MakerDAO/Sky, Curve, Pendle and Morpho. It also expands utility for DRV and ENA.

“We’re proud of the opportunity to power the largest on-chain options protocol, which will unlock new structured product financial primitives,” said Guy Young, Founder of Ethena. “We believe USDe can serve as an incredibly powerful primitive for the biggest DeFi and CeFi venues to harness, providing them with increased capital efficiency, improved liquidity, and easier user acquisition. We’re confident our partnership with Derive.xyz will further validate this thesis.”

This partnership will enable Derive.xyz to tap into Ethena’s vast liquidity and network to accelerate the growth and adoption of its market-leading derivatives ecosystem, helping it to continue building derivatives and structured products around USDe.

Derive.xyz will also explore building the first ENA options market – developing structured products that leverage market-leading sUSDe rewards – and integrating USDe as collateral to improve capital efficiency for Ethena’s users.

“We’re thrilled to announce this monumental partnership with Ethena, a world leader in DeFi,” said Nick Forster, Founder of Derive.xyz. “Integrating Ethena’s immense liquidity and strong user base with Derive.xyz’s unparalleled derivatives protocol not only unlocks significant opportunities for Derive.xyz users, but also positions it as the premier on-chain derivatives platform. Together, we are setting new standards in DeFi, offering innovative solutions that cater to both retail and institutional traders. Get ready for the next generation of groundbreaking on-chain derivatives, liquidity, and financial products.”