Paradigm operates a zero-fee institutional liquidity network that connects institutional counterparties to source large and complex derivatives liquidity across centralized and decentralized venues. The platform provides workflow automation to execute multi-leg and multi-product strategies as single atomic transactions, reducing leg risk and execution costs. Paradigm is non-custodial, lets traders choose settlement venues, and offers products such as complex order books for spreads and combinations, spread matrices for futures, and loans rate curves. The company works with over 600 institutions and reports trading volumes have risen roughly 1,300% year-over-year to about $10 billion in total volume traded per month. In 2021 Paradigm increased headcount threefold and captured roughly 30% of global listed options volume. Management says it is focused on establishing a robust network before monetizing and plans to use new funding to build out its network of institutional traders, CeFi exchanges, and DeFi protocols, enhance 24/7 customer support, and expand product offerings. Paradigm is developing a decentralized order-book protocol that aims to unite liquidity from every crypto exchange into one giant pool. The product is being built as a lightweight, sidechain-like protocol independent of Ethereum to address speed and performance limitations of existing decentralized exchanges. Co-founders Liam Kovatch and Henry Harder, both on leave from Columbia, expect to show a beta by the end of the year. Financially, the Paradigm Foundation raised a $1 million equity seed led by Polychain Capital with participation from Dragonfly Capital Partners and Chapter One. The founders say the small round was oversubscribed and was intentionally capped at $1 million to remain capital efficient, citing 0x’s earlier seed as a reference. The protocol will allow exchanges and individuals to advertise liquidity on the same book, with the team predicting trading fees will decline as the network grows.

Total raised

$36M

Funding rounds

2

Latest round

Series A

Latest activity

Dec 2021