DeFi Exchanges

Linear: The first cross-chain compatible, delta-one asset protocol

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Linear Finance is a new DeFi product that seeks to solve some of the most common problems in decentralized finance today. These problems include prohibitive gas costs caused by the widespread use of the Ethereum blockchain, front-running (a practice we described yesterday) and the slowness of the various decentralized exchanges (where it is necessary to pay even more fees to get a transaction through faster). 

Linear Finance defines itself as a decentralized delta-one asset protocol, i.e. a protocol able to offer its clients the possibility to exchange synthetic assets (a bit like Synthetix, Hegic and other already established products) and to be exposed to a larger number of assets without having to pay fees for every single purchase. In short, a sort of token set to get exposure to more and more tokens. All of this is topped off by Linear’s cross-chain feature, a feature capable of providing faster and cheaper exchanges than the ones we are used to in recent weeks. However, Linear is not only this, but also many more things like LinearDAO, Linear.Exchange, Lina token and so on. Let’s start with DAO.

LinearDAO and LINA Token

Linear is a DAO, i.e. a decentralized protocol that is managed by the holders of LINA, the governance token. The community can submit proposals and vote on the ones made by other users, deciding the future fate of the entire ecosystem. For example, users can decide LINA’s inflation rate, transaction fees and many other basic operations that can improve the project. Obviously, the DAO and the governance token, even though the project is cross-chain, are native on the Ethereum blockchain, like 99% of similar projects. 

However, the LINA token is not only useful for being part of the DAO but also for other functionalities offered by Linear, such as staking and payments. LINA is at the heart of the ecosystem as it is used as collateral to mine other synthetic assets. To elaborate: in order to mint a new asset, the user must deposit collateral and this can be divided as follows: at least 80% in LINA tokens and the rest in other cryptocurrencies. This gives relevance to your token and enhances its value over time. The token already has a fully diluted market cap of about $800 million, so the plan seems to be working great. 

The max supply of LINA is 10 billion, but the current price is only 0.08 cents. The ATH is 11 cents and was reached a few days ago. The token is freely exchangeable on Uniswap and some central exchanges like Bitmax, BiBox, MXC, Bilaxy and so on. P.s. on CoinGecko the lowest price was only $0.004 in November 2020, but the BullRun of the last few months has increased the value of many tokens tenfold, so I don’t find this worrying if you believe that derivatives are the future of crypto trading. 

LINA’s other utility is staking and the rewards are generated by using Linear.Exchange, an exchange that offers 0.25% fees and redistributes these fees weekly to all LINA stackers. Yield Farming will also run for 2 years and will allow early investors to lower their purchase price by giving away LINA tokens to those who use this feature.

Linear.Exchange and Public Team

The project team is public and can be consulted on this page of the official website. Anonymous teams have been known to create trust issues lately, so this move seems very smart to me. Finally, there is the exchange that we have already talked about. This is an exchange that would like to solve liquidity and gas fee issues by working with other blockchains besides Ethereum. Linear will use the oracle services offered by Band Protocol, the second oracle project in the crypto world (right after Chainlink). To sum up, the premises for a successful project are all there. What do you think?

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