Derive, formerly known as Lyra, is a decentralized derivatives exchange with spot, perpetuals and options markets.
It is built on Derive Chain, a L2 optimistic rollup that settles on Ethereum.
Derive actually consists of 3 separate components, namely the Derive Chain, which is a settlement layer for transactions, the Derive Protocol, which enables permissionless, self-custodial margin trading, and the Derive Exchange, which is an order book-based exchange.
So what can you do on Derive?
Trade Perpetuals on Derive
Derive supports perpetual futures trading for multiple asset types like BTC, ETH, and more with USDC as the quote asset.
The variety of markets available for perps means you are able to trade and speculate with a leverage of up to 20x.
Delta neutral hedging on Derive
Delta neutral hedging is also possible on Derive – you can also hold the underlying base asset token as a collateral or hedge, i.e. long the asset on spot, and simultaneously short the perpetual futures contract on Derive, and collect funding premium.
The protocol can support any ERC20 token as collateral, being approved via on-chain governance. Currently, wETH, wstETH or wBTC tokens could be used as collateral.
Options exchange
Derive is also an options exchange, supporting options on BTC and ETH across different dates, including 0 DTE and 1 DTE and as well as options expiring in 1 week, 2 weeks, 4 weeks and further ahead.
Borrow
Derive also supports a USC lending market, where you can borrow USDC against your trading collateral.
The good thing is Derive supports a wide variety of assets that can be used as trading collateral, including weETH and rswETH which are restaked ETH (which means you can farm points while borrowing).
