What Is Linear Finance?

Linear Finance is a decentralized cross-chain protocol that allows users to quickly and cost-effectively create, manage and trade synthetic assets. The project developers set the goal of democratizing access to synthetic assets by creating a whole package of decentralized applications. Using Linear Finance, users can earn passive income, as well as trade on a secure, easy-to-use, and fast synthetic asset exchange. Initially, Linear Finance was launched on the Ethereum blockchain, but it supports cross-chain compatibility. Currently, the protocol is integrated with the Binance Smart Chain, allowing users to use the DeFi protocols of both networks. Moreover, the developers also plan to integrate the protocol with Polkadot to further expand the ecosystem.

Linear Buildr

Linear Buildr is a decentralized app with which users can stake LINA tokens and receive passive income in the form of a staking reward and a pro-rata portion of all transaction fees generated by Linear Exchange. But that’s not all. Users who stake LINA can build ℓUSD synthetic stablecoins. ℓUSD can be further used to purchase synthetic assets (Liquids) on the internal exchange of the project as well as to generate passive income on third-party DeFi protocols.

To build ℓUSD, the user needs to deposit LINA into the debt pool, taking into account the pledge ratio (p-ratio). At the time of writing, the p-ratio is 500%. The p-ratio is used to determine the amount of ℓUSD that users can borrow based on the current market value of LINA. Users can claim rewards and unlock collateral by maintaining a p-ratio of 500% and above. After users enter the number of LINA tokens they want to lock, the protocol automatically calculates the amount of ℓUSD, taking into account the p-ratio.

In addition to building ℓUSD, users can also use the Buildr dapp to claim LINA and ℓUSD rewards. Rewards are distributed every week. Users must claim rewards within a set period. Otherwise, rewards will accumulate in the debt pool until the next distribution. Note that LINA rewards cannot be received immediately, as they are locked for an annual period from the moment of the claim. On the other hand, ℓUSD rewards are available immediately and can be used to purchase Liquids, increase p-ratio, and generate passive income.

Within the framework of Buildr, the ℓUSD burning section is also available to the user. Users have to burn ℓUSD to unlock deposited LINA tokens. Users have the right to independently set a gas fee for burning transactions. The lower the gas fee, the slower the transaction.

In addition to the above features, it is also necessary to highlight the “Swap” tab. By going to the Swap section, users can transfer any protocol tokens (LINA, ℓUSD, Liquids) from one network to another (Ethereum or BSC). This feature will be useful for users who want to use BSC or Ethereum DeFi protocols.

Linear Exchange

Linear Exchange is a fast, secure, cost-effective exchange within which users can buy and sell synthetic assets with unlimited liquidity and zero slippage. Almost any asset, cryptocurrencies, commodity, indexes, or fiat can be expressed as a synthetic asset. When writing, users can buy 14 types of synthetic cryptocurrencies, including ℓBTC, ℓADA, ℓBNB, ℓETH, and other popular coins. In addition, synthetic gold and silver, the value expressed in USD, fiat currencies Euro and Japanese Yen, and thematic digital tradable indices — ℓDEFI and ℓPLAY are also available for trading. The platform receives prices for Liquids with the help of oracles. The information is updated almost instantly.

The transaction fee is 0.25%. The collected fees are distributed between LINA stakers that maintain at least a 500% p-ratio.

Linear Vault

Linear Vault is a yield farming platform launched on the Binance Smart Chain. Within the framework of Linear Vault, liquidity providers can earn LINA, ℓUSD, and BUSD tokens. Currently, two active pools are available in which users can deposit ℓUSD or LP Tokens. When depositing ℓUSD tokens, the user can receive 8.6442% APY in ℓUSD or BUSD. The user has the right to independently choose which token to receive as a reward by depositing ℓUSD into a certain pool.

To earn LINA tokens, the user needs to add liquidity to the ℓUSD-BUSD pool on the decentralized PancakeSwap exchange. After adding liquidity, the user becomes a liquidity provider and earns ℓUSD-BUSD LP tokens. These tokens can be deposited in Linear Vault to earn about 47.2239% APY in LINA.

$LINA Token

The LINA token is a utility and governance token of Linear Finance. LINA is an ERC20 token that can be transferred to Binance Smart Chain. LINA has a limited maximum supply of 10 billion tokens. About 3.73B tokens are in circulation at the time of writing. Most LINA tokens are locked according to the schedule and will be distributed over several years between 10 categories. Most of the tokens (40%) will be distributed as a reward for staking. About 15% will be allocated to the reserve, which is managed by Linear DAO. Also, 10% of the tokens will be distributed among the project team. The remaining amount of tokens will be distributed in such categories as — Ecosystem (10%), Liquidity (5%), Advisor (5%), Community (5%), Seed/private/public rounds (2.4/7/0.6 %).

Linear DAO

Linear Finance developers strive to build a community-oriented project, so they use a DAO пщмуктфтсу model. Within the framework of Linear DAO, LINA token holders can propose, discuss and vote for improvements, new listings, fund management, changes to staking rewards, exchange transaction fees, and much more. To submit a proposal for improvement and listing, the user must hold at least 1,000 LINA. On the other hand, DAO members do not pay for voting. Voting is conducted offline using a Snapshot.

Conclusion

The long-term plans of Linear developers include integration with other blockchains and expansion of financial involvement for all categories of users. Currently, the project has good prospects, as it allows users to easily trade synthetic assets, receive passive income, and swap Linear tokens between the Ethereum Network and Binance Smart Chain. Thanks to this, users can access all the DeFi protocols available on Ethereum and BSC.

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