DeFi Project Paradigm Labs Winds Down

Paradigm Labs, a decentralized (DeFi) liquidity solution project, is shutting down this month after the team’s inability to develop a stable business. The project was backed by Polychain Capital, Dragonfly Capital and Chapter One Ventures.

Paradigm Labs’ Chief Executive Officer Liam Kovatch announced the shutdown on Tuesday, saying the company didn’t have enough resources and had failed to identify product-market fit.

Paradigm Labs, which started operating in 2018, was optimistic about improving the situation of DEX liquidity, and was seen as a company that could make a significant difference for DeFi and cryptocurrency.

Fast forward two years and the company is now shutting down because the team couldn’t develop a resilient business.

Over the past 2 years, Paradigm Labs launched two distinct products - Zaidan and Kosu. While Zaidan showed some positive results, Kosu failed to adapt to the DEX market structure.

At one point, Paradigm Labs couldn’t decide between giving up on Kosu, or trying to resolve the issues. Kovatch believes that the team made a mistake because it failed to pivot from Kosu to Zaidan.

Launching Zaidan showed potential, but because it was expensive, the team couldn’t secure investments to continue on with the project. As Paradigm Labs winds down, the company’s also closing its ZRX staking pool, which was created to fund Zaidan.

The pool will stop accumulating funds from the 0x protocol on March 16.