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Derive V3 Goes Live, Moving Onchain Options Custody to Ethereum

Derive completes its V3 migration, moving onchain options custody to Ethereum and adding ETH, WBTC, and HYPE borrowing.

Derive V3 Goes Live, Moving Onchain Options Custody to Ethereum

Derive, the largest onchain options venue, has officially launched its V3, announcing late Wednesday that its V2 migration is complete and trading is back on. The rebuild retires Derive Chain, its OP Stack rollup, for a zkVM exchange that keeps user funds in Ethereum L1 contracts.

What’s the Scoop?

  • The architecture: Order matching stays offchain at sub-millisecond speeds, while ZK proofs verified on Ethereum handle margin and settlement. State data goes to Celestia, and an escape hatch lets users force withdrawals via L1 if the operator stalls.

  • What’s new: ETH and BTC can now be margined together, and borrowing expands beyond V2’s USDC-only setup to ETH, WBTC and HYPE. Markets are split into isolated risk groups, and builders can spin up fee-earning vaults without writing code.

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  • Migration notes: The cutover wrapped up Tuesday afternoon, carrying balances and positions over automatically. Traders do need to resubmit trigger and TWAP orders, and the app remains off-limits to US persons.

  • The momentum: Derive had cleared roughly $14.2B in options notional in 2026 as of Oct. 1, nearly 3x its 2025 total, per Alea Research figures in our Derive V3 primer.

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