The decentralized finance platform Synthetix and the Derive options protocol (formerly Lyra) have abandoned the planned merger worth $27 million. The deal, described in proposal SIP-415, involved a token swap ratio of 27 DRV to 1 SNX, which valued Derive at $27 million. Synthetix planned to issue 29.3 million new SNX tokens to complete the deal. However, following active discussions and negative community feedback regarding the valuation and potential dilution of SNX token value, the deal was canceled.
Derive representatives noted that the decision was made after 'careful discussions and consideration of community input.' The main concerns were related to the token exchange ratio, the three-month lock-up period, and the lack of restrictions on the issuance of new Synthetix tokens. Derive community members also pointed out that their platform generates higher revenue than Synthetix, raising doubts about the fairness of the valuation.
Both platforms will now focus on independent development. Synthetix will continue building decentralized derivatives on Ethereum, while Derive will seek alternative strategies to expand its products.
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