Synthetix Brings Derive Together to Transform the Future of DeFi

Synthetix, a leading protocol in the decentralized finance (DeFi) sector, is moving ahead with plans to reacquire Derive, a derivatives trading platform it initially established as an independent project. This strategic move is intended to strengthen its standing within the rapidly changing DeFi landscape and foster deeper integration of derivatives into its core synthetic asset offerings. This action mirrors a larger movement among DeFi initiatives to bring essential functions back under one roof, aiming to boost usability and streamline operations.

Introduced as a separate venture in 2022, Derive has made notable strides thanks to its automated market

(AMM) protocol and its emphasis on perpetual futures products. By reuniting Derive with Synthetix, the organization intends to capitalize on its existing infrastructure and user communities, making it easier for users to access both synthetic and derivatives products. This merger is anticipated to facilitate smoother cooperation between the platforms, such as allowing synthetic assets to be used as collateral for trading derivatives.

This reacquisition also fits with Synthetix’s wider ambitions for growth in DeFi. Recent statistics indicate increasing engagement with synthetic and derivative assets, with the total value locked (TVL) in the

network surpassing $400 million in the first quarter of 2025—a 68% increase from the previous year. Experts attribute this surge to growing institutional interest and the maturation of DeFi frameworks, which are encouraging more users to adopt sophisticated financial products.

Key financial indicators from Synthetix’s most recent quarterly disclosures reveal a substantial uptick in user engagement. The platform recorded a 120% jump in daily active users compared to the prior quarter, and in March 2025 alone, more than 25,000 unique traders engaged in derivatives trading on Derive. These numbers point to surging interest in all-in-one DeFi solutions and indicate strong prospects for continued growth.

However, the reacquisition does come with certain obstacles. Regulatory oversight is a primary concern, especially as authorities in significant jurisdictions are increasing their attention on derivatives and synthetic asset markets. While Synthetix has not yet outlined a detailed compliance strategy, the company has emphasized its dedication to transparency and user safety. Upholding these commitments will be crucial for fostering lasting trust and sustainability as regulatory frameworks evolve in the DeFi space.