We’ve had perpetuals mania in crypto lately, and rightfully so, since perps are powerful, efficient instruments. But take note, as onchain options are quietly having their biggest year yet, and Derive is currently facilitating most of the action here.
Indeed, per Alea Research, Derive has cleared ~$14.2B in options notional so far in 2026 (already nearly 3x its total for all of 2025), and this September was its busiest month on record, too. Not bad.
However, Derive’s next leg up could be near, as the project’s about to rebuild itself from the ground up.
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Pending a governance vote that wraps this weekend, its V3 upgrade is slated to go live on Tuesday, Oct. 6th. Notably, this shift will move the exchange off its own chain and onto Ethereum via zero-knowledge proofs.
The big idea is that V3 won’t just be a better venue for trading options, but rather that it can become the options engine other apps plug into. Let’s break down what’s changing and what it could mean for the onchain options race.
Options give you the right, yet not the obligation, to buy (calls) or sell (puts) an asset at a set price by a set date. When Derive CEO Nick Forster joined David Hoffman on Bankless in mid-September, he cast perps as a blunt instrument and options as “a Swiss army knife.”
In other words, with a leveraged perp you can call a trade’s direction correctly and still get wiped out by a single ugly wick. An option defines your risk upfront, though, so a bad hour doesn’t kill your thesis.
Crypto is Ready for Onchain Options | Nick Forster, CEO of Derive on Bankless
Getting the direction of ETH right doesn’t guarantee you survive the trade.
Bankless
That flexibility lesson hit home after last October’s 10/10 crash, which per Nick also dried up two big institutional yield sources, i.e. basis trades and pre-TGE farming (earning tokens before they launch). As such, selling options became one of the few ways left to earn sustainable yield at scale.
Derive was well placed to catch that shift after years of iterating, first as an options AMM called Lyra, then as an orderbook on its own OP Stack rollup, Derive Chain.
Still, onchain remains a sliver of the pie. Derive’s V3 proposal pegs its open interest (OI) at ~$2B against an estimated ~$40B globally, and Nick puts centralized offchain giant Deribit at ~70-75% of the crypto options market. In other words, Derive has won its onchain arena, but the bigger prize lies in expanding outward.
1) Off its own chain, onto Ethereum
V3 retires Derive Chain in favor of a single zkVM application, i.e. a program whose execution gets proven correct with zk proofs.
Order matching will stay offchain for speed, while the risk math, pricing, and settling of trades all happen in the zkVM. Ethereum L1 then just verifies one proof per batch, at a roughly flat ~400-500K gas no matter how many trades are inside.
User funds will live in Ethereum L1 contracts, and a fingerprint of the program’s code is committed onchain, so the sequencer (the operator batching transactions) can’t bend the rules. An escape hatch will also let users force actions through L1 if that operator stalls. The data needed to rebuild V3’s state, meanwhile, gets posted to Celestia.
2) Risk universes
V3 splits markets into isolated risk universes, namely Prime (BTC, ETH), Mid-cap (HYPE), Alt (SOL, XRP, ADA, etc.), and RWA (gold via XAUT for now). That way a blowup in a long-tail market can’t bleed into the majors.
This matters because speed-to-list has been Derive’s edge. Per Nick, it launched HYPE options last November before Deribit had them and thus became the go-to venue for that market.
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Accordingly, isolated universes should let Derive run that playbook faster with new coins and RWAs.
3) A builder layer
This is the piece I find most compelling. V3 ships with one-click vault deployments, the ability to borrow assets like ETH or HYPE, cross-currency margin (e.g. ETH and BTC backing one portfolio), and tighter session key controls.
For integrators, this all boils down to one API and one settlement layer, and with no Derive bridge necessary to babysit.
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Toward this vision, Derive is openly courting teams building options-strategy yield vaults, fixed-payoff structured products, mobile-first trading apps, agent strategies, and even binaries and prediction markets. Nick’s bar is ambitious, too. He told Bankless an outside team should be able to ship something on Derive in roughly an hour going forward.
4) The migration
Users won’t need to withdraw and redeposit, as V2 accounts and positions get snapshotted straight into V3.
Some orders and positions will change in the move, though, so active traders should check the account preview on Derive’s V3 page beforehand. Here’s how the switch is slated to play out:
So is V3 happening? I pulled up the proposal on Snapshot this morning (Oct. 1st) to see. The answer is looking like definitely.
At the time, ~79.5M DRV had voted For (99.18%) versus ~654K Against (0.82%), with voting set to close Saturday, Oct. 3rd. Barring a shock, the upgrade will go through. That said, the entire tally came from just 12 votes, a reminder of how concentrated DRV governance still is via its delegates system.
The market has been pricing in the shift, too, with DRV running from ~$0.14 at the end of August to ~$0.40 today.
Can V3 help Derive take a real bite out of Deribit? As is often the case in crypto, the bull case here comes down to distribution.
If V3 becomes the options backend for wallets, vaults, agents, and other apps, Derive’s growth will no longer hinge on traders finding its own frontend. There’s precedent for this, too.
For instance, when Phantom built perps into its wallet on top of Hyperliquid, the integration earned Phantom ~$20M in builder-code fees in under a year, likely mostly from users who’d never opened Hyperliquid itself.
Pair this sort of dynamic with Derive’s list-first playbook, and the protocol does have a credible path to flow that’s never touched DeFi.
Of course, there are tradeoffs. Per the V3 proposal, a Derive Foundation subsidiary’s multisig will own the protocol at launch, with a 6-of-8 path to bypass its timelock, and a handoff to stDRV holders could come later. Plus, with state data on Celestia rather than Ethereum, V3’s stated L2Beat Stage 1 goal could hit a definitional snag, as L2Beat has historically reserved stages for rollups that post data to Ethereum.
Whatever happens from here, V3 is among the most ambitious DeFi overhauls of 2026. Options are the instrument mature markets always reach for, and if they’re the next big thing to bulk up onchain in earnest, Derive is the clear frontrunner to carry them. Keep your eyes peeled when things kick off next Tuesday.
