Derive has rolled out its V3 upgrade and said the migration from V2 is complete, with trading now live again on the platform. The release replaces Derive Chain, the company’s OP Stack rollup, with a zkVM-based exchange design that keeps user funds in contracts on Ethereum mainnet.
Under the new setup, Derive continues to handle order matching offchain for speed, while margin and settlement are processed through zero-knowledge proofs verified on Ethereum. The change is aimed at shifting custody to Ethereum L1 while preserving the fast trading experience expected by derivatives users.
How the new system is structured
Derive said its new architecture separates execution speed from settlement and custody. Orders are still matched offchain at sub-millisecond speeds, while the exchange uses ZK proofs on Ethereum to manage margin and settlement.
State data is posted to Celestia, according to the company’s description of the system. Derive also said the design includes an escape hatch that allows users to force withdrawals through Ethereum L1 if the operator were to stall.
What changes for traders
V3 introduces cross-margining between ETH and BTC, allowing both assets to be used together for margin. That marks a change from earlier configurations in which collateral options were more limited.
Borrowing has also been expanded beyond the USDC-only model used in V2. In V3, Derive said traders can borrow ETH, WBTC and HYPE in addition to the prior setup, broadening the assets available inside the platform’s risk engine.
The company also said markets are now divided into isolated risk groups. In a separate product change, builders can create vaults that earn fees without needing to write code.
Migration details after the cutover
The migration finished on Tuesday afternoon, according to the announcement. Balances and existing positions were carried over automatically as part of the transition to V3.
Some order types were not preserved through the move. Traders need to submit trigger orders and TWAP orders again after the relaunch. Derive also said the application remains unavailable to U.S. persons.
Volume growth provides the backdrop
The V3 launch comes as Derive reports strong growth in options activity this year. According to Alea Research figures cited in Derive’s V3 primer, the venue had processed about $14.2 billion in options notional in 2026 as of Oct. 1.
That total was nearly three times its full-year 2025 volume, based on the same figures. The next confirmed step is the platform’s post-migration operation under the new Ethereum-based custody model, with trading already resumed following the completed cutover.
Source: www.bankless.com