Liquidity network Paradigm incubates new appchain 'Paradex' on Starknet

Paradigm, an institutional liquidity platform for cryptocurrency not to be confused with the venture capital firm of the same name, has incubated a decentralized perpetual derivatives Layer 2 appchain named “Paradex.” 

Described as a hybrid derivatives exchange, the project will integrate liquidity from Paradigm with the transparency and self-custody typical of DeFi. It will operate as its own chain based on Starknet’s developer stack and is the result of a collaboration between Starnet contributor StarkWare and Paradigm that lasted six months, according to a statement. 

Paradigm operates as a liquidity network for crypto derivatives traders, catering to both the centralized finance and decentralized finance sectors. With the debut of Paradex, Paradigm aims to broaden its presence in the Layer 2 domain.

“As we began evaluating blockchain scaling technologies that would enable Paradex’s ambitious vision, it became clear that we needed a solution that would not only deliver scalability, but also control and customization,” said Nafaa Hendaoui, head of product at Paradex. 

Earlier this week, Starknet introduced an appchains framework, facilitating the creation of multiple application-specific blockchains within its ecosystem.