Weekly Buyback #88# Complete 106,580 DRV was purchased at an average price of $0.45. Derive DAO has bought back a total of 28,209,375 DRV. Buybacks are currently allocated 35% of protocol fees. From this epoch onwards, buybacks will be allocated 50% of protocol fees.

A new governance proposal to pursue Derive's expansion into US-regulated derivatives markets is live on the Derive forum. Community members are encouraged to review the proposal and join the discussion:

A closer look at our thinking behind V3. Our CTO @josh_pwrk sat down with @Nomaticcap to talk through how we got here, why we chose Ethereum and ZK, and where we think onchain finance is headed. We've spent five years building onchain options and learning from the traders who use them. Josh shares the lessons behind V3 and why we want to make it easier for others to build alongside us. Watch the full conversation below.

Derive V3 is live. The migration completed successfully and trading has resumed. We've rebuilt Derive to compound our growth in onchain options, with custody on Ethereum, ZK proofs for margin and settlement, and sub-millisecond order matching. What does this entail? ➤ Launch no-code vaults and earn fees ➤ Free up capital with ETH + BTC risk offsets ➤ Earn and borrow across ETH, WBTC, HYPE + USDC ➤ Faster listings across crypto and RWAs ➤ Build and monetise apps on Derive with less setup We'll build on this foundation with new markets, vaults and partner integrations over the coming weeks. 5+ years on onchain options:

Exciting weekend flows: $450M+ notional in 24 hours. 92.4% of all onchain options premium volume. Open interest back above $4.58B. Cumulative volume crossed $40B all time. 🏆 V3 is coming, migration 6 OCT📝

First big $LIT options trades are hitting the tape. LIT 27 Nov $6 Call 250,000x bought @ $0.4220 $105.5k premium, ~$986k notional Breakeven: $6.42 (+63% from spot) If LIT does a 2x to $7.88 by expiry, the position is worth $470k. That's +$364.5k profit, a ~4.5x on the premium.

Introducing HEAT v2 As one of the original builders in the @DeriveXYZ ecosystem, we are incredibly excited to announce our social trading app for options coming with Derive V3! Place option trades by simply interacting with the chart, follow and copy big traders and more!

There's no easier way to place a trade on @DeriveXYZ. Just tell us what you think, and our agent will set up the trade for you 🤖 AI trading is now live on and it's free.

A new governance proposal to increase the allocation of protocol revenue to DRV buybacks to 50% is live on the Derive forum. Community members can review the proposed increase and share their views. Read the proposal and join the discussion:

With the recent surge of @DeriveXYZ I think it's a good moment to release the first beta version of Options are still very complicated to understand and trade, Tacticalls aims to simplify this. A social app on top of the $DERIVE infrastructure. A kind of fomo but for options. More details 🧵 👇

Weekly Buyback #85# Complete 137,000 DRV was purchased at an average price of $0.41. Derive DAO has bought back a total of 27,782,461 DRV. Buybacks are allocated 35% of protocol fees.

Derive holds the top three ETH and top two SOL spots on the Delphi options dashboard. The three ETH contracts did ~$200M in 24h notional, roughly 11% of tracked ETH options volume. All are Sept. 24 calls at $2,850, $3,000 and $3,100. On SOL, Derive’s December $150 and $300 calls did another ~$3.45M, roughly 12% of tracked SOL options volume.

Makes me really happy to see so many finding out about Derive for the first time this week. The team and I love the feedback, keep it coming. Here are some thoughts: 1. “The UI/UX is too complicated for beginners” - this is fair, the UI is deliberately geared towards experienced options traders and institutions. To date this has been the overwhelming majority of our users and volume. For now, you can find the ‘strategy builder’ feature in the RFQ tab which helps craft options strategies according to your market view, for a simpler experience. More importantly - we don't want to build every retail options experience ourselves. We want hundreds of teams building them on top of Derive. Because options are so tailorable (extremely precise, tailorable strategies for any asset over any duration), there are going to be a ton of different flavours of options based products that are created and successful, across retail trading, structured products, quantitative investment strategies, and vaults. I think that this is one of the biggest unexplored businesses you can build in crypto ATM. V3 is built to support seamless integrations for builders who want to do this. I know of 5+ great teams already working on it. Reach out to me directly if this is something you are doing, and check out the docs here: 2. “My RFQ order isn’t getting a quote/the quote isn’t great.” Orders over ~5m notional or on longer tail alts might need 5-10 minutes for market makers to respond manually. We have a few great MMs that are on autoquotes, but that isn’t (yet) 24/7. So if you don’t love the quote or it looks far from the mark, give it 5-10 minutes when using RFQ (you can also go to the orderbook for instant fills). We have onboarded some major new MMs just this week, so you can expect this to continuously improve. It is our top priority. Keep the feedback coming here. 3. ‘I have a position that has gone deep ITM and I want to get out and liquidity is bad on the orderbook/RFQ.’ Hear you on this - it is one of the tougher challenges in options to build true 24/7 liquidity on deep ITM/OTM strikes with very little time to expiry. We have some programs rolling out for MMers to incentivise liquidity and improve spreads on these. Feel free to reach out to the team directly if you can’t find the quote (you can also delta hedge with perps, which get cross-margined against your options position). Working on it. 4. Wen more RWAs? Very soon Please keep the feedback coming, we are working on a number of different fronts atm with all of the new demand, so if you see something not addressed just know that we hear it and it will be addressed.