DeFi protocol Ethena on Tuesday announced a new partnership with Derive.xyz, the world’s leading platform for on-chain options and structured products, which will invest millions of dollars to increase liquidity and drive growth for both protocols. As part of the partnership, Ethena will integrate Derive’s core trading, options, futures and vaults, leveraging Ethena’s USDe stablecoin and USDE staking to increase liquidity and trading volume, according to a press release.
Ethena will launch its core business in Derive perpetual markets, pending approval by the Ethena Risk Council. This is expected to increase volumes and liquidity on Derive, strengthening Derive users’ ability to execute large orders at stable prices. In this regard, the Lyra Foundation, which oversees the Derive protocol, will receive a multi-million dollar grant from the Ethena Foundation, and staked ENA (sENA) holders will be rewarded with 5% of the DRV tokens provided by the Ethena Foundation. The ENA token is the governance token for the Ethena ecosystem.
Derive said it will integrate USDe as collateral, allowing users to trade while earning passive income. Ethena’s USDe is a synthetic dollar that uses a hedged cash-and-carry strategy. The on-chain derivatives protocol will also introduce vaults for holders of staking USDe (sUSDe), allowing them to collect rewards by combining Ethena’s stake returns with Derive’s structured product strategies.
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