DeFi Project Shuts Down

DeFi Project Shuts Down

DeFi Project Shuts Down

Decentralized finance project (DeFi) project Paradigm Labs is shutting down. The DeFi lab which was backed by big-time crypto investors such as Chapter One Ventures, Dragonfly, Poly Capital is closing shop. 

In an announcement on Tuesday, CEO Liam Kovatch said that “

was the reason for the closure. He further insisted that the internal and external factors were outside the control of the team. 

Paradigm Labs burst into the scene in 2018, having raised an undisclosed amount in seed funds for developing a liquidity aggregation protocol for DEXs called Kosu. 

According to Kovatch, the DEX environment has evolved astronomically in the past two years. He mentioned that “We’ve been able to observe significant developments such as the launch of Uniswap, the establishment of the decentralized finance (DeFi) movement and more. While exciting and positive for the community at large, these developments have made the DEX space incredibly fluid, and challenging for an organization like ours to navigate.”

Kovatch further went to say that Paradigm Labs began to have second thoughts on Kosu’s viability following the various changes the DEX landscape experienced in mid-2019. All of these was attributed to the Uniswap’s popularity as well as early developments on the DEX protocol 0x.

Custodial Request For Quotation System

Following an increase in crowded liquidity protocol, Kovatch said that the team created a new product. This new product was a non-custodial request for quotation system, and it was built on 0x. According to Kovatch, the idea was “Came to us late in the company’s life cycle at which point we were under-resourced to fully develop Zaidan […] were quite hesitant to pivot completely away from Kosu due to the investment we had made in the project. In retrospect, this hesitation was a mistake.”

Kovatch insists that Paradigm Labs came before its time. In a different environment and timeline, the program would have been a success. Kovatch attributes Paradigm Labs’ failure to being too early in entering the DeFi space. The project is unable to find the adequate funding to take it to the next level. 

DeFi on The Rise 

Reports show that the locked-up assets in the DeFi market hit a landmark of $1 billion in value. This milestone shows a considerable increase from last year’s value. The locked-up assets include; decentralized apps, protocols, smart contracts across the spectrum.

 


Bitcoin Autobot Latest Reviews

For More Bitcoin Platform review check out our platform section.

If you are drawn in Bitcoin Trading and Autobots, you are more than welcome to take a look at our latest review:

See our latest Bitcoin Autobot Trading Reviews. We gathered here the Top Bitcoin Autobots that we reviewed lately:

The Bitcoin Profit Extended Review might change the way you think of trading Bots. While the Bitcoin Compass will help your trading abilities.

For additional reviews check out the latest one regarding the Ethereum Code.