Synthetix and Derive Complete $27 Million Merger Plan
- Synthetix and Derive merger called off by mutual decision
- Derive is considered undervalued in the proposed deal
- SNX token will not be minted for acquisition
The $27 million acquisition deal between Synthetix and Derive has been called off following criticism and a reassessment of the proposal by both communities. The two decentralized finance platforms have jointly withdrawn their merger proposals, known as SIP-415 and DIP, which had been under review since mid-May.
The original plan called for the unification of the ecosystems through the acquisition of Derive by Synthetix, which would include the transfer of technology, treasury and products. The transaction would be executed through a token swap, with a ratio of 27 DRV (Derive token) for 1 SNX (Synthetix token). To achieve this, Synthetix would have to mint 29,3 million new SNX tokens.
The Derive team said the decision was made “after careful discussion and community feedback,” adding that the withdrawal of the proposals was consensual. Derive’s $27 million valuation has sparked internal resistance, especially after the platform has seen revenues surpass Synthetix’s own in recent weeks.
The SIP-415 and DIP proposals to merge Synthetix and Derive have been mutually withdrawn following thoughtful discussion and community feedback.
This moment reaffirms our independent path and the community's belief in it.
Derive operations remain uninterrupted. Trading is live,… https://t.co/Uf5DmZNME5
— Derive (@derivexyz) May 21, 2025
Members of the Derive community questioned the logic of the deal, arguing that more robust revenue data indicated that Derive was undervalued. This argument undermined enthusiasm for the merger, contributing to both parties backing away from the deal.
Synthetix’s intention with the proposal was to incorporate Derive’s expertise into its Perps V4 solution, which is focused on perpetual contracts on Ethereum with a centralized order book. With the cancellation, Synthetix will pursue other strategies to strengthen its derivatives portfolio.
Derive, in turn, reaffirmed its commitment to independent development, highlighting that it will continue to evolve its platform autonomously in the decentralized options sector. The episode reinforces the importance of community participation in governance decisions involving crypto assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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