Derive V3 started with one question: how do you scale an onchain derivatives exchange without moving settlement away from Ethereum? Our answer was to build an application-specific rollup for derivatives, with Celestia for data availability, Succinct for proofs and Ethereum for settlement. Why not just put everything on Ethereum? Derive produces a lot of state, and that grows quickly with activity. Posting all of the underlying data directly to Ethereum would make scaling the exchange much more expensive. V3 posts the data behind state changes to @celestia, while the protocol continues to settle on Ethereum. Why does that data need to exist outside Derive? Because V3 is designed so users can still verify their state and withdraw without depending on Derive’s API or sequencer. If the data only existed in our own database, that guarantee would be much weaker. Celestia gives the protocol somewhere independent to publish the data needed to reconstruct and verify state, while Succinct proofs verify the updates that are ultimately committed to Ethereum. Where does privacy fit? We've been working with the Celestia ecosystem on a design where account data will eventually be encrypted while still giving users what they need to prove their state themselves.