Synthetix and Derive have jointly withdrawn their $27 million merger proposal

PANews reported on May 26 that, according to The Block, the merger proposal between the decentralized options platform Derive (formerly Lyra) and Synthetix for the $27 million acquisition has been withdrawn by both parties. In mid-May, Synthetix proposed to integrate Derive's technology and products through a token swap to create an Ethereum mainnet derivatives protocol, and submitted SIP-415 and DIP proposals, but Derive canceled them. The Derive team announced that after community feedback and internal discussions, both parties jointly withdrew the proposal.

In the original plan, Derive was valued at $27 million, with a replacement ratio of 27 DRV to 1 SNX, and Synthetix needed to issue an additional 29.3 million SNX. However, the Derive community noted that its recent revenue is higher than that of Synthetix, arguing that the acquisition valuation underestimates its value, and that the additional SNX issuance may harm the rights and interests of holders. Synthetix, which originally planned to strengthen its derivatives platform Perps V4, will now turn to other solutions to optimize the ecosystem. Derive, for its part, reaffirmed that it will adhere to the path of independent development, and the termination of this cooperation will not affect its strategic autonomy.

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