Polynomial Chain and Polynomial Trade have issued a statement announcing their cessation of operations. The company stated they were “shutting down instead of launching a token for a dying product.”
Polynomial is a DeFi platform for onchain derivatives. The company claims to have served over 100,000 users and processed over $4 billion of trading volume.
The company was backed by well-known investors, including Archetype Ventures, raising a $1.1 million seed round in 2023.
The company shared that it will force close all positions on February 18 with a complete shutdown on March 3.
“Please withdraw your funds before Feb 24th.”
In a series of posts, the company explained that they built something they were proud serviing markets across crypto, stocks, commodities, forex, and indices.
“The first hybrid perps combining AMM + orderbook. Multi-collateral support. Gasless trading that felt like a CEX. The tech was solid. Really solid. But solid tech doesn’t win in derivatives. We built faster execution. Better UX. Innovative infrastructure. None of it mattered. Traders went where the liquidity was. We didn’t have it. Everything else was just features … In derivatives, liquidity is the only moat.”
Polynomial plans to regroup and then re-enter the market shaing that next time it will “build the moat first.”
