Paradigm Labs Shuts Shop, Unable to Find Product-Market Fit
The project will be legally dissolving by the end of the month. Anyone can ask questions on their Discord Channel until April 1, 2020.Â
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DeFi liquidity provision project Paradigm Labs is winding down. They cited their early entrance to the DEX ecosystem and the inability to build a resilient business as the prime reasons.
Paradigm Labs Fails to Find Market Fit
The project began in 2018 with stark ambitions of improving the state of DEX liquidity and was promised as a potential gamechanger for DeFi and cryptocurrency.
Two years later, the team has struggled to build a sustainable business and decided that instead of sinking more resources into the firm, winding down was the best plan of action.
In the announcement, Liam Kovatch, CEO and founder of Paradigm Labs, stated that timing, hesitation to pivot, and capital constraints were at the heart of the decision to dissolve the company.
Paradigm Labs offered two distinct products: Zaidan and Kosu. While Zaidan saw some degree of success, Kosu was riddled by trade-offs.
The team was caught in the dilemma of either abandoning Kosu or trying to work through the problems. Kovatch theorizes that their inability to pivot from Kosu to Zaidan, owing to sunk costs, was a mistake.
Kyber Network is another, similar DeFi liquidity project that is slightly older than Paradigm Labs. They, however, have found product-market fit within the DEX ecosystem and didn’t hesitate to pivot, as evidenced by the swift changes to their token economics.
The announcement also came with instructions for users.
Those staking ZRX with Zaidan’s War Chest (ZRX Validator #6) should deposit their stake with other validators, as Zaidan is run by Paradigm Labs and will no longer be active after March 16.
The project will be legally dissolving by the end of the month. Anyone can ask questions on their Discord Channel until April 1, 2020.
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