Paradigm Labs Shuts Down Amid DeFi Crisis

Paradigm Labs, liquidity provision project of DeFi is wrapping up. The major reasons for closing down are the inefficiency to build a resilient business and early introduction of DEX ecosystem. The closing of the project may hit infancy of Decentralised Finance ecosystem but the wastage of funds which can be diverted for development of other services for crypto space is also not justified.

The “Sinking Boat” Of Paradigm Labs of DeFi

Paradigm Labs of DeFi

Liam Kovatch, CEO and founder of Paradigm Labs announced that timing, hesitation to focus on the central point and financial incapability were at the core of the decision to discontinue the company. He further explained that the inability to pivot Kosu, which was one of the distinct product of Paradigm riddled by trade-offs, to Zaidan, the product which showed little hopes to continue the business.

The project was started in 2018 to improve the conditions related to the liquidity of DEX and to act as potential gamechanger for DeFi network and cryptocurrency markets. But, all the efforts were in vain when the team rather than struggling to build a sustainable ecosystem, decided to wind up the business.

Liquidity Pools To Strengthen Decentralised Finance

Cryptocurrency promises to make transactions universally accessible and DeFi or Decentralized Finance or Open Finance Movement takes that promise as one step forward. It helps in providing services like savings, lending, trading, insurance etc to anyone across the world through a smartphone and internet connectivity.

In recent times, many of liquidity projects are working to increase the inbound as well as outbound liquidity to improve the growth of financial markets. For crypto to reach its maturity stage, information related to the discovery of price and the ease to move in and out of the trade positions remains the key. Thus, projects like Uniswap, Bancor, Balancer, Convexity and many more are working to strengthen the concept of Decentralised Finance in the crypto space and opening the crypto space for the whole world.

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Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Crypto News DeFi Paradigm Labs shutdown Defi crisis

Paradigm Labs Shuts Down Amid DeFi Crisis

Tarulika Jain

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