Ethena and Derive.xyz Announce Partnership to Enhance DeFi Derivatives and Options Trading

Ethena, the provider of yield-bearing products on Ethereum and issuer of the USDe token, has announced a partnership with Derive

Ethena, a provider of yield-bearing products on Ethereum and the issuer of the USDe token, has announced a new partnership with Derive, an on-chain derivatives and options trading platform.

According to an announcement on Tuesday, the partnership will see Ethena make a multi-million dollar grant to Derive, which will be using the funds to create a new token. In exchange, Ethena will receive 5% of Derive’s native token DRV, with 5% of those tokens being distributed to sENA stakers.

As part of the partnership, Derive will also integrate the USDe as collateral, allowing users to earn additional yield. On the other hand, Ethena will integrate the on-chain derivatives platform, enabling USDe stakers to leverage Derive’s trading strategies.

Commenting on the partnership, Nick Forster, Founder of Derive.xyz said in a statement:

“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,” Forster added.

Ethena will begin trading on the Derive platform upon approval from the Ethena risk control team, as part of a strategy to boost trading volume and liquidity on Derive, the report said.