HomeDocumentationAPI Reference
Log In
Documentation


DRV: The Foundation of Derive

Derive is a composable ecosystem of derivatives powered by the DRV token. This blog explains the governance mechanisms, staking incentives, and utility features designed to foster sustainable growth and engagement.


Token Overview


  • Ticker: DRV
  • Total Supply: 1,000,000,000
  • Migration Ratio: 1:1 for LYRA/stkLYRA holders
  • Chain: Ethereum Mainnet and Derive L2

No new tokens will be minted.


Utility


1. Staking for Governance (stDRV

  • Stake DRV into stDRV to participate in governance
  • Staking Features:
    • 28-day unlock period or instant unlock with a 20% penalty.
    • Non-transferrable to secure governance integrity.
    • Voting power can be delegated.

Staking Rewards:

  • Earn weekly rewards funded by DAO emissions.
  • 6 months post-TGE, emissions decrease and transition to buyback-funded rewards.

2. Governance Framework

Governance will operate entirely on Derive L2, offering:

  • Proposal Creation Wizard: Streamlined tools for drafting proposals.
  • Delegation Flexibility: Re-delegation and partial delegation for institutional participants.
  • Low-Cost Voting: Leveraging Derive L2 for minimal fees.

3. Protocol Usage Incentives

DRV incentivizes trading, liquidity provision, and ecosystem engagement:

  • Weekly Emission Pool: Up to 2,500,000 DRV allocated for trading and liquidity programs.
  • Unused Rewards: Returned to the DAO treasury.

4. Sustainable Buybacks

  • 25% of protocol revenue funds weekly DRV buybacks.
  • Ensures long-term demand and treasury growth.

Emissions Schedule

  • Initial Weekly Rewards: Up to 1,150,000 DRV for staking.
  • Post-6 Months: Drops to a maximum of 600,000 DRV and transitions to buyback funding.

At a Glance


FeatureDetails
Total Supply1,000,000,000 (fixed)
Migration Ratio1:1 from LYRA/stkLYRA
Staking TokenstDRV (non-transferrable, 28-day unlock, or 20% instant unlock penalty)
GovernanceDelegated voting, proposal wizard, low-cost transactions on Derive L2
Staking RewardsWeekly emissions transitioning to buyback funding after 6 months
Protocol IncentivesUp to 2,500,000 DRV weekly for trading and liquidity programs
Revenue Buybacks25% of protocol revenue allocated for DRV buybacks
Pre-Stake Bonus2.5% boost for users committing DRV during the pre-launch window

DRV combines robust governance, staking incentives, and sustainable emissions to fuel growth. This tokenomics framework prioritizes decentralization, security, and long-term alignment for tokenholders and ecosystem participants.


Summary of Derive Token



Core Components

  • Derive Chain: An Ethereum rollup leveraging the OP Stack for high performance and security.
  • Derive Protocol: A generalised risk engine supporting advanced portfolio margining.
  • Derive Exchange: A self-custodial, high-performance exchange built for both GUI and API users.

Governance Evolution

  • Fully autonomous governance where staked tokenholders manage the DAO and protocol parameters.
  • Enables direct token holder control, ensuring decentralization and transparency.

Sustainability Model

  • DAO earns revenue through protocol fees, rollup fees, and liquidation fees.
  • Fees support the ecosystem and provide funding for staking rewards and buybacks.

Adoption Strategy

  • Incentive structures attract traders, liquidity providers, and integrators to the platform.
  • Flexible rewards and growth experiments align stakeholder interests with long-term protocol success.

Stay tuned for further updates from Derive in 2025.