Paradigm: A comprehensive introduction to crypto investment institutions

As a leader in the investment industry, Paradigm has provided many excellent projects throughout Hanye. But many people still don’t know what Paradigm does? Simply put, it is an investment institution. Paradigm positions itself as a research-driven technology investment company, focusing on the encryption industry and other cutting-edge related technologies. Paradigm's investment style often intervenes in the early stages of projects, with investment amounts ranging from millions to hundreds of millions of dollars, and continues to provide support to the invested companies after the investment, including technology (mechanism design, safety, engineering ) to operations (recruitment, listing, legal and regulatory strategies), the following editor will give you a comprehensive introduction to the investment institution Paradigm.

What does Paradigm do?

Paradigm is a San Francisco-based venture capital firm founded in 2018 that focuses on investments in the cryptocurrency field. As one of the top venture capital firms, Paradigm is known for its selective project investments, selecting only a few potential projects for financial support. Their portfolio includes well-known projects such as Optimism, Blur, and Synthetix. As an expert in cryptocurrency investment, Paradigm is committed to driving innovation and development in this field.

Paradigm can be said to have started with BTC. During the bear market in 2018, it chose to invest its main funds in BTC and ETH. Whether the success of this investment was based on strong judgment of the market or luck is still unknown. However, what was surprising was that once the news broke, the endowments of Harvard and Yale invested an additional approximately $350 million in Paradigm. This shows trust in the Paradigm team and optimism for its future development.

After successfully surviving the bear market, Paradigm became famous because of the great success of Uniswap, which it invested and incubated in 2019. This crypto-native fund adheres to the philosophy of research first and deep participation in investment, attracting more and more people's attention. Then, Paradigm successfully raised another US$2.5 billion in November 2021, continuing to expand its influence.

What projects has Paradigm invested in?

According to Paradigm’s official website and other public information statistics, Paradigm has nearly 70 investment portfolios, mainly focusing on infrastructure (12), DeFi (16), NFT/games (17) and exchanges and other finance The service company is involved in the Ethereum, Layer2, Solana and Cosmos ecosystems, including Optimism, StarkWare, Cosmos, Phantom, Uniswap, dYdX, OpenSea, MagicEden, Blur, SkyMavis and other leading projects in various fields. The following is a detailed introduction to some projects:

1. ATOM

Cosmos is a parallel network supported by Tendermint consensus between different chains. In the Cosmos ecosystem, various spaces can communicate, trade and interoperate with each other. The goal of Cosmos is to eliminate the barriers between blockchains, build a blockchain Internet, and become the preferred platform for various practical application scenarios.

COSMOS is built on Tendermint’s BPOS PBFT consensus mechanism. This mechanism involves the roles of validators and proposers. PBFT is used to confirm the validity of blocks, and the voting weight of validators depends on the number of their staked tokens. BPOS is used to distribute the power of validators. The proposer for each round will be determined based on the proportion of votes in the validator order list. Tendermint uses a Byzantine fault-tolerant algorithm, which requires an absolute majority of two-thirds of the votes to select the optimal solution.

2. OP

Optimism is a low-cost, lightning-fast Ethereum secondary blockchain. Optimism Ecosystem is an overview of the applications and integrations in the Optimism ecosystem. Optimism solves the actual needs of developers and users. The Optimism Foundation is a non-profit organization dedicated to developing the Optimism Collective. OP is its native governance token and is mainly used for governance protocols.

3. COMP

Compound is a protocol based on Ethereum, which is used to establish a fund pool based on changes in supply and demand of assets and algorithmically calculate interest rates. Suppliers and borrowers of assets interact directly with the protocol to earn or pay floating rates. The Compound protocol attempts to solve the liquidity problem through the money market system, and currently most cryptocurrencies are idle in exchanges and wallets, with no corresponding interest for asset owners.

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