# Canonical: https://www.uddalak.xyz/hyperliquid-academy/article/47-derive-v2
# Author: Uddalak Das
# Last source: https://www.uddalak.xyz/hyperliquid-academy/article/47-derive-v2

---
title: "Derive V2: Options Access From HyperEVM"
description: "How Derive connects HyperEVM collateral to an external derivatives venue for options, perps, and structured strategies."
track: "Ecosystem"
level: "Advanced"
primary_icp: ["trader", "institutional decision-maker"]
secondary_icp: ["DeFi-native user"]
reading_time: "3 min"
last_reviewed: "2026-09-07"
protocol_url: "https://derive.xyz/"
snapshot_tvl: "$53.2M attributed to Hyperliquid L1"
---

# Derive V2: Options Access From HyperEVM

Derive is a derivatives protocol focused on options, perpetuals, and structured products. Its Hyperliquid integration lets HYPE remain custodied through contracts on HyperEVM while being used as collateral for positions in Derive's derivatives system.

DefiLlama attributes about **$53.2 million** of Derive V2 TVL to Hyperliquid L1 as of August 31, 2026.

```mermaid
flowchart LR
    A[HYPE on HyperEVM] --> B[Derive bridge vault]
    B --> C[Collateral representation]
    C --> D[Derive derivatives system]
    D --> E[Options]
    D --> F[Perpetuals]
    D --> G[Structured strategies]
```

## The distinction is where execution happens

Derive's presence in Hyperliquid TVL should not be read as meaning its options order book has become a native HyperCore market. Derive operates its own derivatives infrastructure and settlement architecture.

The HyperEVM integration is a collateral bridge between the ecosystems. That distinction matters for understanding security assumptions, latency, settlement, and where trading risk actually lives.

## Options introduce nonlinear exposure

A perpetual has roughly linear directional exposure to the underlying. An option has a strike, expiry, and nonlinear payoff. Its value also depends on expected volatility and time remaining, not only the current spot price.

Derive supports European-style options and portfolio-margin concepts designed to recognize offsets across positions. That makes it relevant to traders constructing volatility or hedged portfolios rather than only directional perp positions.

## Product access can be composable without moving the user narrative off Hyperliquid

The integration shows one path for expanding the Hyperliquid financial stack: assets can remain in HyperEVM-facing custody while an external specialist venue supplies a product that HyperCore does not natively provide in the same form.

This introduces additional dependencies. Users should understand the bridge-vault design, Derive's own settlement chain and margin system, oracle assumptions, and withdrawal path.

## Why Derive and Rysk are separate lessons

Both expose options to Hyperliquid users, but their architectures differ. Rysk executes fully collateralized options logic on HyperEVM, while Derive connects HyperEVM collateral to Derive's broader derivatives stack. Comparing them is a useful lesson in how the same financial product can be delivered through very different systems.

## Sources

- https://docs.derive.xyz/
- https://docs.derive.xyz/docs/supported-products-1
- https://help.derive.xyz/en/articles/9085059-what-is-derive
- https://defillama.com/protocol/derive-v2