{"id":129756,"date":"2025-05-22T04:23:49","date_gmt":"2025-05-22T04:23:49","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129756"},"modified":"2025-05-22T04:23:49","modified_gmt":"2025-05-22T04:23:49","slug":"synthetix-scuttles-27m-derive-deal-after-community-concerns","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129756","title":{"rendered":"Synthetix scuttles $27M Derive deal after community concerns"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsDecentralized finance platform Synthetix has axed its $27 million plan to acquire crypto options platform Derive after negative community feedback.<br \/>\nA Synthetix spokesperson told Cointelegraph on May 22 that its acquisition proposal, pitched to its community and to Derive\u2019s, \u201cdid not resonate,\u201d and both projects agreed to \u201cstep back from the proposed acquisition.\u201d<br \/>\nSynthetix said on May 14 that it would acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million, pending approval from both communities.\u00a0<br \/>\nSynthetix strategy lead Ben Celermajer told Cointelegraph that other community concerns were the three-month token lock-up period and the deal\u2019s price, part of which Synthetix tried to address with no lock-up for holders of less than 1 million DRV.\u00a0<br \/>\n\u201cWhile we understand the commercials did not resonate with all community members, a number of holders from both communities believed the deal was fair and acceptable,\u201d he said.\u00a0\u00a0<br \/>\n\u201cHowever, we acknowledge that the response fell short of expectations, and we have no intention of moving forward with something that was intended to be a collaborative and constructive endeavor.\u201d\u00a0<br \/>\nCelermajer said Synthetix will continue evaluating opportunities for building a decentralized derivatives platform on the Ethereum mainnet.<br \/>\nSource: SynthetixDerive community concerned on deal\u2019s benefits<br \/>\nDerive community members expressed concerns over the deal on the project&#8217;s forum, particularly around the token exchange rate and the deal&#8217;s overall benefit to the platform.<br \/>\nDerive user \u201cRamjo\u201d wrote on May 14 that the token exchange rate is \u201ca poor reflection of the value of derive as a platform,\u201d and the \u201cequivalent of selling the bottom and locking in lows.\u201d\u00a0<br \/>\nRelated: Synthetix founder threatens SNX stakers with \u2018the stick\u2019 to fix SUSD depeg<br \/>\nAnother user, \u201cAlvaroHK,\u201d called the deal \u201cdifficult to justify,\u201d as they claimed that Derive generates more revenue than Synthetix, and there was no clause in the agreement to stop Synthetix from \u201cprinting millions of new tokens and keep diluting us.\u201d<br \/>\nAlvaroHK claims Derive generates more revenue than Synthetix, which makes the deal a tall order to justify. Source: Derive\u201cI have found the guidance that Synthetix plans to issue an additional 170 million SNX to increase its supply to 500 million from 330 million,\u201d AlvaroHK added in a follow-up post.<br \/>\n\u201cWhy this information is not disclosed when asked about it? It will dilute an additional 60% off the value of the offer made to Derive,\u201d they added.\u00a0<br \/>\nDerive, which Synthetix started in 2021 as Lyra, operated as a decentralized options protocol but remained part of the Synthetix ecosystem.<br \/>\nIt eventually rebranded to Derive and took steps to operate independently from Synthetix, such as moving away from using Synthetix\u2019s sUSD stablecoin and liquidity.<br \/>\nMagazine: Metric signals $250K Bitcoin is \u2018best case,\u2019 SOL, HYPE tipped for gains: Trade Secrets<a href=\"https:\/\/cointelegraph.com\/news\/synthetix-cans-27m-derive-deal-after-community-concerns?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsDecentralized finance platform Synthetix has axed its $27 million plan to acquire crypto options platform Derive after negative community feedback. A Synthetix spokesperson told Cointelegraph on May 22&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129756"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129756"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129756\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129756"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}