The decentralized finance wave is taking us to new heights. The markets are booming and innovation is flowing. But while things are progressing at incredible speeds, there are always market gaps that need filling.
Truly, it doesn’t seem like we’ve got anywhere near the potential ceiling of DeFi yet. Which is great. This technology is brand new and based on the amount of new things that come out every day, we’re just getting started.
But, the existing ecosystem is unfortunately plagued with issues that need to be solved. We can’t just ignore that. Slow transaction speeds and high transaction costs are one of the biggest problems, hence the increased interest in scaling solutions as of late.
Combine all of this together and you find yourself in a sweet spot of creativity and productivity. As the markets are hot and the problems keep appearing, innovative solutions will be necessary, which pushes the space along quicker. Necessity is the mother of invention, after all.
Today we’re looking at a new DeFi product that takes elements of product strategy from the everyday struggles of DeFi users, and combines those into a whole new concept which is bringing a new product to the DeFi ecosystem. It’s unique, and achieves things that you probably didn’t even realize were possible until now.
Introducing Linear Finance
In technical terms, Linear Finance is ‘the first cross-chain compatible, decentralized delta-one asset protocol to create, trade, and manage synthetic assets’. That’s a very good summary, but might be a tad confusing to most people, so we’re going to break it down simply.
First off, let’s look at synthetic assets, also known as ‘Liquids’ on the Linear Finance platform. A synthetic asset is an asset that lets a user gain exposure to a variety of assets without having to actually hold the true asset.This is also where the term ‘delta-one’ fits in, which basically refers to trading derivatives that have no optionality, so they are expected to follow the true price very closely. In other words, this means that you can trade price fluctuations of real assets without actually owning them.
Now, what’s cool about Linear Finance is the broad range of Liquids they are going to be supporting, it’s not something you commonly see in the cryptocurrency world. Of course, cryptocurrencies are on the supported list, but they sit alongside synthetic assets such as Crude Oil, Coffee, Market Indices, esports and even sustainability focused companies. Therefore, by using Linear Finance traders will be able to gain exposure to a wide variety of global markets on a decentralized platform, all tradable with cryptocurrency.
Next up – cross chain compatibility. You’ve probably noticed that Ethereum is the home of DeFi at the moment. It’s just where the bulk of DeFi products are and because of that it encourages more DeFi products to build there, so they don’t miss out on the user base already available. The result of this has been scalability problems causing slow transactions and high fees. Not ideal for the users.
To combat this problem, Linear Finance is cross-chaining with top tier protocols as an immediate Layer 2 solution to Ethereum scaling. As a result, Linear Finance will be able to support assets from multiple chains, and can offer a huge increase in performance when compared to Ethereum. We’re talking about thousands of transactions per second and an estimated drop in transaction cost as high as 90%! The first chain Linear Finance has announced support for is Binance Smart Chain, and there should be many more announcements to come.
Another great feature that Linear Finance is able to boast is infinite liquidity and no slippage. If you’re a cryptocurrency trader, you’ll be well aware of how much the cryptocurrency market lacks liquidity. It can be a real problem. With Linear Finance, this problem will no longer exist due to their innovative asset pooling system that unlocks infinite liquidity. Game changer.
The Linear Finance ecosystem depends on their native token, the Linear token (LINA). Linear’s backbone is a collateralized debt pool, which is backed by the LINA token. Without LINA, Linear’s platform couldn’t function.
Beyond this, the token is going to expand to become a governance token where holders will be able to vote on all sorts of things including listing assets, oracle selection and much more.
8 Week Pre-staking Incentive Program
To encourage users to stake LINA tokens, Linear will be launching the ‘Linear Early Staking Incentive Program’ alongside the Uniswap listing. The exact date is yet to be confirmed.
Early Linear supporters will earn a total of 150,000,000 LINA tokens according to the schedule shown below:
Linear Finance is a new decentralized asset protocol that will allow people to trade a wide range of synthetic assets, also known as Liquids, that expand beyond the cryptocurrency ecosystem.
Two of the main selling points of Linear Finance are unlimited liquidity and powerful scalability. When combined, these two factors could disrupt the DeFi ecosystem as we know it.
*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.