Plans for a $27 million merger between Synthetix and Derive (formerly Lyra) have been scrapped, as both teams announced they have mutually withdrawn their respective proposals

Plans for a $27 million merger between Synthetix and Derive (formerly Lyra) have been scrapped, as both teams announced they have mutually withdrawn their respective proposals following community feedback and internal discussions.

The proposed deal aimed to integrate Derive’s decentralized options platform with Synthetix’s derivatives ecosystem on Ethereum. It was formalized in Synthetix Improvement Proposal 415 (SIP-415) and Derive Improvement Proposal (DIP).

Under the terms, Synthetix would acquire Derrive’s treasury, technology, and product suite via a token swap.

The deal would have seen 29.3 million new SNX tokens minted, with a token swap ratio of 27 DRV to 1 SNX, effectively valuing Derive at $27 million.

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Proposal Withdrawn After Community Discussion

On Friday, Derive confirmed the cancellation, stating:

“The SIP-415 and DIP proposals to merge Synthetix and Derive have been mutually withdrawn after thoughtful discussion and community feedback.”

The move follows a period of deliberation and feedback from members of both the Synthetix and Derive communities.

As previously reported by TokenInsight, the proposed merger sparked discussion among crypto users on social media, with some expressing skepticism about the deal terms and the broader integration of the two protocols.

The proposed deal aimed to integrate Derive’s decentralized options platform with Synthetix’s derivatives ecosystem on Ethereum. It was formalized in Synthetix Improvement Proposal 415 (SIP-415) and Derive Improvement Proposal (DIP).

The proposal would have seen Synthetix acquire Derive’s treasury, technology, and product suite via a token swap.

The deal would have also seen 29.3 million new SNX tokens minted, with a token swap ratio of 27 DRV to 1 SNX, which effectively values Derive at $27 million.

However, the proposed deal faced significant backlash from members of both the Synthetix and Derive communities, who raised concerns about the valuation of the two protocols, the governance implications of the merger, and the broader strategic direction of the combined entity.

Following this backlash, both teams announced they have mutually withdrawn their respective proposals after internal discussions and community feedback.

Both projects remain committed to improving the decentralized derivatives space.

News data source: kdj.com

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