Derive

Derive is a powerful decentralized platform structured around three essential layers: the Derive Chain, Derive Protocol, and Derive Exchange. The Derive Chain acts as the settlement layer, a high-performance rollup built using the OP Stack and secured by Ethereum. The Derive Protocol is the engine that enables trading of derivatives through smart contracts, offering support for margin trading of options and perpetuals. Finally, the Derive Exchange is the interface and execution layer, matching orders efficiently through a centralized order book while maintaining trustless and self-custodial settlement.

The platform is governed by the Derive DAO, which enables DRV token holders to propose, vote on, and implement changes within the ecosystem. The governance framework includes a unique process called LEAPs, modeled after familiar standards like EIPs and BIPs, allowing community-driven evolution of the protocol. The governance system supports snapshot voting, delegation, and on-chain execution across Ethereum, Optimism, and Arbitrum chains.

A standout feature of Derive is its commitment to composability and transparency. All trades and calculations, including margin requirements, are done on-chain in a trustless environment. Derive’s smart contracts are audited by Sigma Prime and designed to interact with a built-in Security Module that protects the system against insolvency events by covering bad debt through reserve funds.

In the competitive DeFi landscape, Derive stands out against platforms like dYdX, Perpetual Protocol, and GMX, offering a hybrid of centralized speed and decentralized control. Unlike these alternatives, Derive integrates a full DAO governance model with a unique protocol-level risk engine and structured products. Its strategic use of optimistic rollups, margin managers, and a multi-asset collateral system enables both professional and retail traders to execute complex strategies with minimal friction.

Derive provides numerous benefits and features that make it a standout project in the DeFi derivatives space:

• Self-Custodial Trading: Users maintain full control of their assets while enjoying seamless derivatives trading through audited smart contracts.
• Optimistic Rollup Performance: Leveraging the OP Stack, Derive offers high throughput and low fees while being secured by Ethereum.
• Decentralized Governance: Through DRV and stDRV tokens, users participate in the Derive DAO to propose, vote on, and implement protocol changes.
• Advanced Risk Engine: A fully on-chain and transparent margin system with automated liquidation management.
• Composability and Programmability: Derive allows creation of structured products and programmable trading strategies using open smart contracts.
• Security and Transparency: All contracts have undergone audits by Sigma Prime and rely on open data for pricing and settlement.
• Multiple Collateral Options: Support for USDC, ETH, wBTC, and more to facilitate diverse trading strategies.

Derive makes it simple to begin trading, earning, and participating in governance on its platform:

• Visit the Platform: Head over to the official Derive website.
• Connect a Wallet: Use a supported Ethereum wallet like MetaMask or WalletConnect to access Derive. Ensure you are not in a restricted region (e.g., US, AU, Canada).
• Deposit Funds: Deposit USDC or supported assets like ETH/wBTC to your self-custodial trading account.
• Choose a Product: Navigate to Options or Perpetuals via the trade dashboard and select your market.
• Start Trading: Use limit orders through the orderbook or initiate structured strategies using Derive’s smart contract interface.
• Stake DRV: If you hold DRV tokens, you can stake them into stDRV to participate in governance and earn rewards.
• Join the Community: Engage with Derive on Twitter, Discord, and the official blog to stay up to date.
• Access Support: For issues, visit the Derive Docs or the in-app help center.