Synthetix decreases 27 million dollars from the deal after the community is recovered

Synthetix canceled its proposed acquisition of $ 27 million on the encryption options platform.

This decision was taken after the initiative received strong criticism from both societies concerned.

A general violent reaction

The proposed acquisition was announced for the first time in the May 14th blog mailIt included a symbolic exchange of 1 SNX to 27 DRV. The plan is designed to integrate the presence in the market in force in Synthetix and experience in the chain with the DERIVE chain matching engine to build a pioneering derivative and derivative platform.

However, the deal was subjected to the approval of the societies of both platforms, the support that it failed to achieve.

The protocol said in an update: “Synthetix Sip-415 has withdrawn the suggestion of obtaining derivation after reviewing the notes of the community and stakeholders,” the protocol said in an update.

According to the team, comment Lack of contentment revealed the terms of symbolic exchange and evaluation of derivation.

At the General Forum of the Crypto Options platform, one of the users called “Ramjo” said that the distinctive exchange rate “reflects a badly derivative value”, called “the equivalent of selling the bottom”. Another member of the community, “Alvarwak”, ” Described The deal as a “terrible suggestion” will not help it at all.

They pointed out that DERIVE earns more revenues from Synthetix and warned against the potential risks associated with the latter. This includes the last disposal of Stablecoin Susd, which decreased to $ 0.68 in April, and its potential effect on the treasury and the protocol.

In a follow -up, the user asked why he did not mention what to prevent Synthetix from continuing to print more distinctive symbols, which revealed that they had found guidelines showing plans to raise the offer from 330 million to 500 million. They argued that these unpopular details will reduce the offer of derivation by another 60 %.

A battle for domination

Derive began as part of Synthetix in 2021 under the name Lyra, but it was later renamed and moved to work independently. This included the shift away from the use of Susd Stablecoin and liquidity.

If the acquisition had passed, the company would have been issued up to 29.3 million SNX icons, with a three -month imprisonment period of nine months of gradual release. However, with a distinctive symbol trading about 97 % less than its highest level ever at $ 28.53 registered in February 2021, the risk of mitigation and low value probably contributed to the community frequency.

Despite the end of the proposal, Synthetix He said You will continue to search for strategic opportunities to achieve its goal of building a supreme derivative platform on Ethereum Mainnet.

This comes at a time of competing in the area of ​​encryption derivatives, with platforms like Binance, Dydx and Hyperleleliquid all compete for dominance. Coinbase also recently announced a $ 2.9 billion deal to get Deribit, the largest exchange of digital assets.