Derive (DRV)
Derive is a decentralized protocol designed to facilitate the creation of programmable on-chain options, perpetuals, and structured financial products. It operates on a unique blockchain infrastructure known as Derive Chain, which is an Ethereum rollup built using the OP stack. This makes Derive a permissionless smart contract platform, enhancing its accessibility and utility for a broad range of financial transactions.
The Derive Chain and protocol
The Derive Chain
The Derive Chain is an Ethereum rollup, which means it leverages the scalability and efficiency of rollup technology to enhance transaction throughput and reduce costs. By utilizing the OP stack, Derive Chain benefits from the security and decentralization of the Ethereum network while offering improved performance. This makes it an ideal foundation for hosting decentralized financial applications and protocols like Derive.
| Ticker | DRV |
| Category | Smart Contract Platform |
| Website | https://derive.xyz/ |
| @derivexyz | |
| Telegram | +yytV8ZEI8-piNjI1 |
| Contract Addresses | |
|---|---|
| ethereum | 0xb1...be Copied! |
| optimistic-ethereum | 0x33...00Copied! |
| arbitrum-one | 0x77...35Copied! |
| base | 0x9d...83Copied! |
The Derive Protocol
The Derive Protocol is at the heart of Derive’s functionality, enabling the creation and management of advanced financial instruments on the blockchain. The protocol supports the development of options, perpetual contracts, and other structured products, allowing users to engage in sophisticated trading strategies. This is achieved through a permissionless smart contract platform, which ensures that anyone can participate in the ecosystem without barriers.
Governance and economic model
Derive DAO
The Derive DAO (Decentralized Autonomous Organization) plays a pivotal role in the governance and economic model of the Derive ecosystem. It is responsible for overseeing the operations and development of the Derive Protocol and Derive Chain. The DAO earns revenue from trading fees associated with the protocol and gas fees from the chain. These fees are accumulated in an insurance fund, which is used to maintain the robustness and stability of the platform.
DRV token
Governance within the Derive ecosystem is driven by the DRV token holders. These stakeholders have the power to influence decisions regarding protocol upgrades, fee structures, and other critical aspects of the platform. The DRV token serves as a means of aligning incentives among participants, ensuring that the interests of the community are represented and protected.
Innovative trading application
AI-powered trading app
Derive has developed an AI-powered trading application specifically designed for professional traders. This application, in collaboration with Messari, offers advanced tools for translating market insights into actionable trades. The app leverages smart contract wallets to facilitate one-click, gasless, and chainless transactions, streamlining the trading process for users.
Supported trading features
The trading app supports a variety of trading features, including spot, perpetual, and options trading on the Derive platform. Additionally, it integrates with spot Automated Market Makers (AMMs) on Layer 2 solutions such as Optimism, Arbitrum, and Base. This connectivity allows users to access a wide range of trading opportunities across multiple platforms, enhancing liquidity and market access.