When the markets are hot, things start happening quickly. And right now, cryptocurrency is hot. There’s a lot going on in this market, and the space is surging forward with promise.
DeFi is, without a doubt, the main reason that crypto is currently drawing so much interest. There’s so much to be said for all of the products DeFi offers. But DeFi has also sparked a new movement by highlighting two huge issues that are still existent today: scalability, and cross-chain communication.
The majority of DeFi is hosted on Ethereum, which has at times significantly slown transaction times down, and hiked fees up beyond belief. People have been paying more than $100 just to interact with DeFi protocols, which is absurd. As well as this, the struggle that developers have deciding whether they should launch on Ethereum, which is suffering from scalability problems, or a competitor, which doesn’t have the same user base, is tough.
It seems like two problems can be solved at once though – cross-chain communication might make it possible for the DeFi ecosystem to exist as it is now, but also expand beyond Ethereum while communicating with Ethereum. Thus, scalability can vastly improve but the ecosystem doesn’t have to orchestrate an entire shift.
We recently introduced you to Linear Finance, and they have been pushing forward with a number of impressive partnerships and announcements recently. As a company, Linear Finance seems to be taking full advantage of the current market conditions and they are on a quest to solve the problems that currently exist in DeFi, while also bringing something new to the table.
If you’re not aware, Linear Finance is the very first cross-chain compatible, decentralized delta-one asset protocol. Whilst built on Ethereum, the first EVM compatible blockchain integration is with Binance Smart Chain. With Linear Finance you will be able to trade a wide variety of synthetic assets in a market that has unlimited liquidity. Linear Finance is bringing assets to the crypto world that haven’t been available before, such as crude Oil, coffee and much more.
In this article we’re going to take a look at the recent progressions of Linear Finance, and see what it might mean for their future as a cryptocurrency business.
Partnership with Nervos
Nervos is an open source blockchain ecosystem that is aiming to combine the strengths of Ethereum and Bitcoin together into one network. Bitcoin is secure, immutable and trustless and acts as a trusted store of value blockchain. Ethereum is the most used smart contract platform. But both have their issues. The Nervos Network brings security, trustlessness and smart contracts without compromising on scalability.
On September 23 Linear Finance announced a partnership with Nervos, which they aim to use to penetrate the Chinese market and improve their product offering. Together the companies will explore how Nervos’ cross-chain asset solutions can be used to improve the synthetic asset offerings of Linear Finance.
Linear Finance chose to work with Nervos because they believe that in the future there will only be a few chains that are capable of storing the value of assets and acting as a bridge between different blockchains, and they think that Nervos could well be one of these chains. The two companies share the vision of an interoperable future, in which the blockchain ecosystem will be vastly more connected than it is now.
Nervos also boasts a strong DeFi community in China, which Linear Finance will be able to tap into by adding Nervos as one of their cross-chain partners.
LINA staking Program
The LINA community can now stake their tokens in the collateralized debt pool, which enables users to ‘build’ liquid USD, which will be used to purchase synthetic assets on the platform launches.
For now, early LINA supporters are able to stake their tokens and earn incredible returns. A total of 150 million LINA tokens will be distributed to stakers over the first 2 month. On the first day, the minimum APY was 1,636% – crazy.
LINA token whitelisted on Balancer
Balancer, one of the most well known DeFi protocols, is ‘a protocol for programmable liquidity’. Earlier this month, Linear Finance’s LINA token was whitelisted on the Balancer platform.
This means that LINA holders are now able to create BAL pools with LINA, enabling them to earn BAL LP tokens from their holdings in a decentralized environment. Furthermore, by becoming successfully whitelisted on Balancer, this exposes a whole new community to Linear Finance and the LINA token.
Deploying on Moonbeam
Moonbeam is a new project by Purestake that’s recently raised $1.4 million from numerous prominent blockchain venture capital firms. Moonbeam announced two initial partners alongside their funding announcement, one of which is Linear Finance – which means Linear Finance will be deploying on Moonbeam.
Moonbeam is a decentralized platform powered by the Polkadot Network that enables developers to easily build Ethereum compatible smart contracts that can function across interoperable applications.
This means that Linear Finance will be able to use cross-chain compatible smart contracts – a very powerful tool. Therefore, by deploying on Moonbeam, Linear Finance will become one step closer to their goal of increasing the interoperability of DeFi in such a way that scalability and high transaction fees are no longer an issue.
Partnership with Hex Trust
Hex Trust is a leading digital asset custodian for the banking sector and institutions.
Linear Finance has partnered with Hex Trust, who will provide Linear Finance with a custody solution with a consensus-based approval mechanism. On top of this, LINA will be integrated into Hex Trust’s institutional-grade custody platform called Hex Safe. This will mean institutional clients have an easy way to securely store LINA in a licensed, insured and secure environment.
Linear Finance has shown through their latest actions that they are progressing with purpose. As a company keen to pursue cross-chain interoperability, their latest partnerships with Moonbeam and Nervos should be extremely effective. On top of this, the launch of their staking program and whitelisting on Balancer in increasing the notoriety of their native token, LINA.
*This article has been sponsored. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space. The above article does not represent financial, investment or trading advice and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.