The Derive community released a new DIP proposal on Sept. 15 to deploy and launch Derive V3, migrate all V2 positions and balances into V3's genesis state, move cross-chain bridge funds to layer 1, and gradually shut down Derive Chain. V3 is designed as a zero-knowledge exchange based on a zkVM (virtual machine for zero-knowledge proofs) with settlement on Ethereum mainnet. It would use off-chain order matching and zero-knowledge proofs (cryptographic validity proofs) for risk management and settlement: margin, pricing and settlement computations would run inside the zkVM and be proven off-chain, while Ethereum layer 1 would verify only the proofs. State differences would be published to Celestia to support data availability.