Quick take:
- In exchange, Ethena Foundation will receive 5% of the DRV tokens as part of the partnership, with 5% of those tokens distributed to sENA stakers.
- Derive plans to integrate the USDe token, enabling users to earn additional yield.
- The on-chain options platform is also launching Vaults for staked USDe holders, enabling users to leverage both Ethena’s staking yields and Derive’s trading strategies.
Ethena, the provider of yield-bearing products on Ethereum and issuer of the USDe token, has announced a partnership with Derive, an on-chain derivatives and options trading platform.
According to the announcement on Tuesday, the partnership features a multi-million dollar grant, which Ethena will be investing in Derive in exchange for 5% of Derive’s native token DRV, with 5% of those tokens distributed to sENA stakers.
As part of the partnership, Derive also plans to 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 plans to begin trading on the Derive platform upon approval from the Ethen risk control, as part of a strategy to boost trading volume and liquidity on Derive, the report said.
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