Derive
VerifiedDerive (formerly Lyra) is the leading on-chain options exchange — options, perps and spot with off-chain matching and zk-proven settlement on Ethereum L1 since its October 2026 V3 upgrade.
Active Risk Alerts
Live signals detected by Sentinel monitors across all five risk classes.
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Score history
This rating is re-checked every month. A point is recorded for every check, so a flat line means we looked and nothing moved. Hover anywhere on the chart to see what moved that month, and by how much.
The Problem
On-chain derivatives venues have had to trade self-custody against performance, and options in particular lacked deep, capital-efficient on-chain markets.
The Solution
Derive matches orders off-chain for speed, proves margin and settlement in a zkVM, and keeps user collateral in Ethereum L1 contracts, with portfolio margin unifying options, perps, spot and borrowing under one risk engine.
Why it Matters
The largest on-chain options venue by TVL and notional, and the first to settle options through zk proofs verified on Ethereum, with cross-asset margin and an L1 escape hatch if the operator stalls.
Protocol Metrics
Related Research
View allFrequently asked questions about Derive
What is Derive?+
Derive is a DEX protocol operating on Ethereum. Derive (formerly Lyra) is the leading on-chain options exchange — options, perps and spot with off-chain matching and zk-proven settlement on Ethereum L1 since its October 2026 V3 upgrade.
How does Derive work?+
Derive matches orders off-chain for speed, proves margin and settlement in a zkVM, and keeps user collateral in Ethereum L1 contracts, with portfolio margin unifying options, perps, spot and borrowing under one risk engine.
Is Derive safe?+
DeFi Sentinel rates Derive BB with a safety score of 62/100, indicating elevated risk. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. Derive has 3 audits on record. DeFi Sentinel's analysis flagged 3 high, 4 medium, 3 low risk alerts across Smart Contract & Technical Risk, Economic Design & Market Risk, Governance & Centralization and Sustainability & Competitive Position. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
What is the safety score of Derive?+
Derive has a DeFi Sentinel safety score of 62/100 (rating BB), last updated October 13, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Which chains does Derive support?+
Derive is deployed on Ethereum.
Has Derive been audited?+
Yes. Derive has 3 audit reports on record from firms including Sigma Prime, Sigma Prime, Sigma Prime. Audit reports and dates are linked under the Resources tab on this page.