Unlocking $4 Billion in TVL: Derive x Ethena

Michael Spain -

Today, we’re excited to announce a game-changing partnership with Ethena, one of DeFi’s leading protocols with $4 billion in TVL and over 300,000 users. This collaboration unlocks significant opportunities for Derive, enabling us to tap into Ethena’s liquidity and network to accelerate the growth and adoption of our market-leading derivatives ecosystem.

Partnership TL;DR:

  • Ethena protocol integrates Derive’s basis trading, options, futures, and vaults.
    • Ethena’s USDe and sUSDe – with $4B TVL – will be deeply integrated into Derive, unlocking massive potential for volume and liquidity.
    • Ethena will begin executing the basis trade on Derive’s perpetual markets (subject to Ethena Risk Council Approval).
  • The Lyra Foundation (responsible for stewarding the Derive protocol) receives a multi-million dollar grant from the Ethena Foundation.
  • sENA stakers will receive 5% of DRV tokens that were granted to the Ethena Foundation.
  • USDe as collateral boosts capital efficiency, letting users trade while earning yield.

Why This Matters for Derive

Derive has built the best onchain derivatives product with category-leading UX across options, perpetuals, and structured products.

Ethena, the fastest-growing denominated crypto asset ever, has surpassed $4 billion in TVL and achieved deep integration as one of the most widely-accepted assets across DeFi and CeFi.

World-class products × massive distribution = exponential impact.

What This Means for Derive Users

  1. Ethena Basis Trading
    Ethena will begin executing a portion of their basis trade on Derive perpetual markets, driving more volume and liquidity on Derive (subject to Ethena Risk Council Approval).
  2. Structured Product Vaults We’ve launched the first-ever vaults for sUSDe holders, enabling you to stack rewards by combining Ethena’s staking yields with Derive’s structured product strategies. This creates a powerful way to optimize returns onchain. Through 2024, sUSDe rewards have annualized to over 17.5% in returns.
  3. $ENA Trading Derive offers the most powerful financial toolkit onchain. ENA holders will be empowered to unlock their collateral for unparalleled speculation, yield generation, and hedging opportunities.

USDe as CollateralYou can now use Ethena’s staking-backed stable asset, USDe, as collateral on Derive for perpetual futures and options trading while earning rewards and gaining exposure to assets like BTC, ETH, and SOL.

This partnership is just the beginning, setting the stage to redefine the possibilities of modern finance. Exciting developments are on the horizon—stay tuned.

Why Ethena x Derive is a Perfect Fit

Ethena is a trailblazer in DeFi, known for its composability and innovative integrations .We think USDe is one of the most powerful primitives in DeFi today and we’re excited to be building around it.

By partnering with Derive—DeFi’s leader in onchain derivatives—this collaboration creates unique opportunities for both communities. Together, we’re introducing:

  • New Yield Opportunities: Never-before-seen products leveraging both platforms’ strengths.
  • Transparent Execution: Seamless decentralized trading for Ethena users, powered by Derive’s options and perpetual futures.
  • Institutional Vision: Both protocols are committed to creating a capital-efficient DeFi ecosystem for individuals and institutions alike.

Aligning Communities: sENA Stakers x Derive DAO

We’re also enhancing alignment between Ethena and Derive communities. Soon, sENA stakers will earn Derive Points from the Ethena Foundation for staking and locking ENA, creating new incentives for collaboration and deeper liquidity between our protocols and communities.

What’s Next?

This is just the start of an exciting journey. Together with Ethena, we’re building the next generation of onchain derivatives, liquidity, and financial products.

Here’s what’s coming:

  • Expanded Use Cases for sUSDe: Expect more integrations and unique opportunities for sUSDe holders.
  • New Financial Primitives: Derive and Ethena are co-developing groundbreaking DeFi products powered by Ethena liquidity and rewards.

Our mission at Derive is to create the premier onchain derivatives platform, and this partnership with Ethena accelerates that vision.

By unlocking Ethena’s $4 billion in staked liquidity, we’re excited to bring you even better cutting-edge options, perpetuals, and structured products for traders, institutions, and DeFi enthusiasts.

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