Derive

Derive is a decentralized protocol built for traders who want to create and trade options, perpetuals, and structured financial products entirely on-chain, without a central intermediary controlling the order book or custody of funds. It operates on its own dedicated Ethereum rollup called Derive Chain and targets users who want programmable, permissionless access to derivative instruments. The project also offers an AI-assisted trading application aimed at more experienced traders who want to translate market views into executable on-chain transactions with minimal friction.

Derive Chain is an Ethereum Layer 2 rollup built using the OP Stack, which means transactions are settled with Ethereum as the ultimate security layer. The DRV token gives holders governance rights over the Derive DAO, which controls how trading fees collected by the protocol and gas fees collected by the chain are allocated. Currently, those fees flow into an insurance fund designed to support the financial stability of both the protocol and the rollup itself.

The Derive DAO earns two fee streams: trading fees generated by users of the Derive Protocol and gas fees paid by anyone transacting on Derive Chain. Both streams are governed by DRV token holders, and at present the protocol directs those fees into an insurance fund rather than distributing them directly to token holders. Approximately 66.6% of the maximum supply of 1,500,000,000 DRV tokens is currently in circulation, leaving a dilution overhang of roughly 50.0% relative to the circulating supply, meaning a substantial portion of tokens has yet to enter the market.