Friktion partners with Paradigm to bring institutional liquidity to DeFi
by: Friktion Core Contributors
We are excited to welcome Paradigm — the leading institutional options liquidity network for traders — to Friktion.
“We are excited to collaborate with the Friktion team as they continue to build out key DeFi primitives in the Solana ecosystem. Friktion has been at the cutting edge of innovation since their launch and we are delighted to help support their incredible pace of product innovation with our best in class liquidity and automated RFQ workflows.”
- Anand Gomes, CEO, Paradigm
Delivering superior pricing to Friktion users
As a liquidity partner, Paradigm will enable access to an expansive network of 700+ counterparties who account for nearly 30% of daily global crypto options flows. This will further unlock efficient price discovery and execution for Friktion auctions while preserving the non-custodial DeFi guarantees that we value.
Auction mechanism design and optimization is a topic we’ve deeply explored while building out Channel RFQ, the auction engine behind Friktion, which has traded nearly $2bn in options volume to date. With Paradigm joining the Friktion liquidity network, leading crypto options counterparties will seamlessly be able to access the fast-growing DeFi markets.
Building for long-term DeFi yield generation
Friktion Volts are essential building blocks of DeFi portfolios, enabling risk-adjusted return generation that can perform across market cycles. Fundamental to this is a deep, liquid market for the underlying components of Volts. With the growth of Volt#04: Basis Yield, a delta-neutral long/short basis strategy, Friktion will tap into Paradigm’s perpetuals marketplace to deliver an innovative DeFi/CeFi integration.
“Our partnership with Paradigm will further unlock efficient price discovery and execution for Friktion auctions while preserving the DeFi guarantees we value. Bringing the largest CeFi options liquidity network to Solana is the first step in our plan to scale liquidity across venues for Friktion. We’re proud to be working with Anand and his team who have been building since the earliest days of crypto options.”
- Uddhav Marwaha, CEO, Friktion Labs
Stay tuned for an update on observed execution impacts and price improvements as we launch this integration.
Paradigm is an institutional liquidity network for crypto derivatives traders and crypto protocols across both CeFi and DeFi ecosystems. The platform provides traders and crypto protocols unified access to multi-asset, multi-protocol liquidity on demand without compromising on execution preferences, costs and immediacy. The firm’s mission is to create a platform where traders can trade anything, with anyone and settle it anywhere.
Paradigm has the largest network of institutional counterparties in crypto with over 700 institutional clients trading over $10B per month including Hedge Funds, OTC Desks, Lenders, Structured Product Issuers, Market Makers, and prominent Family Offices.
Friktion is Solana’s leading protocol for risk-managed yield strategies. Friktion’s core products, known as Volts, are becoming building blocks of DeFi portfolios that can perform across market cycles. The platform, launched in December 2021, has amassed over 15,000 users and done nearly $2bn in volume since. The protocol’s mission is to enable access to long-term sustainable DeFi yields. Learn more at app.friktion.fi