SNX token rises as Synthetix moves to re-acquire Derive for mainnet perps
- Synthetixs SNX token today jumped 11% amid $27M Derive re-acquisition news.
- Synthetix plans to merge Derives options stack into Synthetixs mainnet perps.
- The proposal will involve swapping 27 DRV for 1 SNX, with Synthetix minting new 29.3M SNX tokens.
Decentralised finance (DeFi) platform Synthetix has announced a $27 million token swap deal to re-acquire options trading platform Derive, a move that has catalysed a significant uptick in the SNX tokens market performance.
The SNX token jumped over 11% to hit an intraday high of $0.9564 following the announcement, lifting the SNX price to a 40% rally over the past week.
This boost in SNX price reflects both speculation around the token-swap deal and renewed optimism for the decentralised finance platforms roadmap.
Synthetixs token-swap deal to acquire Derive
Derive originally spun out from Synthetix under the name Lyra in 2021 before charting its own path, making this token-swap reacquisition a rare case of ecosystem re-consolidation in DeFi.
The proposed deal, outlined in Synthetix Improvement Proposal SIP-415, would see Derive token holders exchange 27 DRV for every 1 SNX, valuing the transaction at approximately $27 million.
To facilitate the acquisition, Synthetix would mint up to 29.3 million new SNX tokens, representing about 8.6% inflation of SNXs current circulating supply.
These newly issued SNX tokens will be subject to a three-month lock-up followed by a nine-month linear vesting schedule to align long-term incentives.
Approval by both the Spartan Council and Derive governance is required before the on-chain token swap can proceed.
Should SIP-415 secure the necessary votes, Derives treasury, codebase, and team will be folded into Synthetixs governance and operational framework.
This unification is intended to streamline governance, simplify architecture, and concentrate revenue flow through the SNX token to strengthen its DAO-driven value proposition.
In addition, the fusion of Derives CLOB-based derivatives stack with Synthetixs on-chain liquidity and incentives model promises to expand the SNX tokens utility and cement Synthetixs standing among leading crypto derivatives platforms.
Community reaction has, however, been mixed, with some Derive stakeholders criticizing the valuation and vesting terms even as SNX token holders anticipate enhanced network effects.
Laying the ground for Synthetix v4 deployment
Reintegrating Derives front-end infrastructure and options expertise into Synthetix is expected to accelerate the deployment of Synthetix v4, which includes launching a centralised limit order book (CLOB) derivatives exchange on Ethereum Mainnet.
Synthetix founder Kain Warwick described the move as reuniting kids who built their own successful startups with the family business, highlighting the cultural synergy between the two protocols.
By consolidating product, talent, and token economics under the SNX banner, Synthetix aims to offer a unified suite of crypto options and perps that can rival established platforms such as Deribit, dYdX, and Binance.
Analysts believe that a combined protocol with both advanced options trading and mainnet perpetual futures could mark a watershed moment for decentralised finance platform innovation.
Investors will be watching closely as the Spartan Council and Derive token holders prepare for vote timelines in the coming week, with a successful approval expected to set a new precedent for token-swap acquisitions in the sector.
The post SNX token rises as Synthetix moves to re-acquire Derive for mainnet perps appeared first on CoinJournal.
Text source: CoinJournal: Home
