Synthetix and Derive Plan Merger to Boost Crypto Futures
Key Notes
- The proposed Synthetix takeover is valued at $27 million at a SNX-for-DRV token swap of 27:1.
- SNX price has reacted positively to the news with potential for more breakout.
- Beyond Synthetix, Robinhood has also acquired WonderFi as crypto M&A heats up.
Derivatives liquidity protocol Synthetix is preparing to acquire Derive, a decentralized options protocol formerly called Lyra. As outlined in the Synthetix Improvement Proposal (SIP-415), the proposed valuation of this acquisition is $27 million and will be achieved via an SNX-for-DRV token swap.
Details of Synthetix Acquisition Plan
According to the announcement, the token swap will be 27:1, which means that 27 DRV tokens will be exchanged for 1 SNX token.
Notably, the transaction will happen under vesting terms, which include a three-month lock-up and nine-month linear vesting. By making this move, Synthetix intends to take over Derive’s treasury, technology, and product suite. Notably, DRV token holders will receive SNX under a defined vesting schedule.
The proposal is still subject to community approval through an on-chain vote. Acquiring Derive aligns with Synthetix’s strategy of vertical reintegration to improve its protocol capabilities on the Ethereum mainnet, particularly for the protocol’s V4 engine. Also, it is part of the protocol’s broader strategy to expand its ecosystem.
The $27 million valuation proposed by Synthetix will cover 29.3 million new SNX tokens. In the past, Synthetix has entered into some strategic acquisitions, including one with perpetual futures platform Kwenta and another with TLX, a leveraged token platform.
SNX Price Soars After a Bearish Season
Following the news of the proposed acquisition, SNX’s market value has soared by more than 4% in 24 hours, according to data from CoinMarketCap. At the time of this writing, the token traded at $0.9090, hinting at more positive momentum ahead. This is a notable growth from its value about three weeks ago.
SNX formed a falling wedge pattern towards the end of April. The current price trend hints that a break above the upper trendline of the wedge with sufficient volume could signal a bullish reversal. If the bullish setup plays out, SNX may see a big breakout.
The Synthetix token price trend has always been on the radar. Notably, the SNX price gained some upside after Synthetix founder Kain Warwick recently took a firm stand on the sUSD depeg.
SNX increased by 7% following the move, a sign of approval of Warwick’s actions and the community’s power in the protocol’s plans. If the community approves of the proposal to acquire Derive, the token may record a further rally moving forward.
Robinhood Acquires WonderFi Technologies
Crypto mergers and acquisitions is growing at a rapid pace. As reported earlier, Robinhood Markets Inc (NASDAQ: HOOD) has confirmed plans to acquire WonderFi, a Canadian crypto company.
WonderFi is primarily recognized for operating two of the country’s established and regulated crypto platforms, which gives Robinhood access to a regulated ecosystem.
The acquisition marks Robinhood’s entry into the Canadian crypto market and is part of the company’s broader effort to expand its presence in the global digital finance sector. Earlier this year, the Ripple’s acquisition of Hidden Road and Coinbase’s takeover of Deribit were two other high-profile M&A events scored in the space.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
