Derive Launches V3 With Ethereum Layer 1 Settlement and Margining

Derive has launched V3 with user funds held in Ethereum Layer 1 contracts, broader borrowing and cross-asset margining, replacing its OP Stack-based chain with infrastructure for trading and settlement on Ethereum.

Trading resumed after the cutover, which automatically transferred user balances and positions. Users must submit trigger orders and time-weighted average price (TWAP) orders again.

The new exchange matches orders offchain, while zero-knowledge proofs verified on Ethereum handle margin and settlement. State data is posted to Celestia, and users can force withdrawals through Ethereum Layer 1 if the operator stops processing withdrawals.

V3 also changes how collateral and borrowing work. Ether (ETH) and Bitcoin (BTC) can now be margined together, while borrowing expands beyond USD Coin (USDC) to include ETH, Wrapped Bitcoin (WBTC) and HYPE.

Derive has divided markets into isolated risk groups, allowing positions in one group to be managed separately from positions in another. The platform also gives developers tools to launch fee-earning vaults without writing code.

The app remains unavailable to U.S. persons.

Derive had cleared roughly $14.2 billion in options notional in 2026 as of Oct. 1, nearly three times its 2025 total.

The completed launch follows Derive’s earlier proposal to shift V3 settlement to Ethereum, which outlined the zkVM design, Celestia data availability and automatic migration of user positions.