TL;DR
- Derive uses Celestia’s data availability infrastructure to expand the capacity of its onchain options exchange.
- The platform accounts for approximately 95% of onchain options premium volume and has processed more than $40 billion in cumulative notional trading volume.
- Celestia makes the data needed to reconstruct the exchange’s state publicly available, allowing users to withdraw their funds even if Derive ceases operations.
Derive uses Celestia’s data availability layer to scale its onchain options exchange, following the launch of V3, an upgrade that increases trading capacity while keeping user funds in Ethereum custody.
According to Celestia, Derive accounts for approximately 95% of onchain options premium volume and has processed more than $40 billion in cumulative notional trading volume.
The platform offers options, perpetual futures, and block trades through a request-for-quote (RFQ) system. It also supports more than 20 types of collateral within a single portfolio.
Derive V3 Increases Exchange Capacity Tenfold
The V3 upgrade increases processing capacity by approximately ten times compared with the previous architecture. It also makes it easier to introduce new markets and financial products.
The system can manage thousands of cross-margined positions within a single portfolio and continue matching orders during periods of intense trading activity.
The infrastructure combines Ethereum-native asset custody, cryptographic validity proofs, and data availability through Celestia.
The proofs verify that recorded state changes are valid, while Celestia makes the data needed to reconstruct the exchange’s state publicly available.
This allows users to recover their funds without relying on Derive’s operator. If a withdrawal request remains unprocessed for two weeks, anyone can use the published data to propose new batches of transactions.
Celestia Provides Scalability and Predictable Costs
Derive has been using Celestia since January 2024. During that period, it has published 43,082 blobs and 42.52 GiB of data in its designated namespace on the network.
The company chose to retain this infrastructure for V3 because of its operating costs, processing capacity, and ease of integration.
Celestia says its Fibre upgrade increased mainnet capacity to 150 MB per second, while a performance benchmark reached 3 Tb per second.
Derive’s chief technology officer, Josh Kim, said integrating the Celestia client into its zero-knowledge virtual machine (zkVM) was easier than expected.
Data availability also allows other participants to continue processing withdrawals if the operator goes offline. User funds remain in Ethereum contracts, while the information needed to verify account balances remains available on Celestia.
