Derive Exchanges Ethereum for V3 Trading Infrastructure Upgrade

Derive, an options exchange developed from Lyra, has proposed replacing its current chain, Derive Chain, with V3, a new options exchange that would settle on Ethereum. This upgrade would make trading infrastructure available to other crypto applications and handle order matching off-chain using a zkVM. Ethereum Layer 1 would verify proofs for trading and settlement calculations.

User funds would remain in Ethereum contracts while state data would be posted to Celestia. The proposal calls for migrating V2 balances and positions from a snapshot, so users wouldn't need to withdraw and redeposit. Derive Chain would be wound down after the migration.

The proposed developer tools include one-click vault deployment, borrowing, cross-currency margin, and session-key controls. Derive aims to give applications a shared API and settlement layer for building on its trading infrastructure.