Welcome to Wealth Mastery Issue #36. In this week’s edition of coin review, we’ll be having a quick look back at Linear Finance. A project we previously introduced to subscribers in Issue #29 with a brief AMA. Since then, it’s continued integrating with Binance Smart Chain, and ready for a closer look.
Introduction
Linear Finance is a cross-chain compatible, decentralized synthetic asset protocol to cost-effectively and quickly create, trades, and manage synthetic assets with no slippage utilizing an unlimited liquidity platform. As discussed before in the AMA and a core concept for Linear Finance is its ability to operate at speeds much greater than current platforms like Synthetix and Mirror Protocol are capable of at the moment. By deciding to build on the BSC (Binance Smart Chain) first Linear Finance has enabled speeds up to 1000 TPS while still maintaining a bridge to Ethereum and its growing ecosystem. Coupled with the price oracle services of BSC native project Band Protocol gives Linear Finance a leg up over much of the competition currently operating. With tremendous value existing in the ability for investors to easily and quickly invest, save fees, and secure assets at fair market value. Linear combines large technical experience from many crypto projects. As well as extensive financial experience in exotic and structured assets, from traditional global asset management firms, to bringing to market one of the first DeFi projects built on Ethereum with working cross-chain compatibility. Linear Finance will allow users to build and manage spot or portfolio exposures with a slew of innovative digital and traditional financial products.
Described as the backbone to Linear’s protocol is the collateralized debt pool, backed by Linear tokens with the eventual addition of other digital and real-world assets. Users who have provided collateralized assets to the debt pool are able to “build” Linear USD (ℓUSD) which can then be used to buy synthetic assets (Liquids) on the exchange. The collateralized assets are subsequently pooled to provide instantaneous liquidity and serve as a counterparty. To ease this process is Linear Finances BUILDR dApp. It’s here that users can stake LINA tokens to “build” ℓUSD. There are a few factors to consider in this process. When a user initiates this staking process you’ll be putting up LINA as collateral and in exchange receiving ℓUSD at a rate of 20%. So, if you deposit $500 USD worth of tokens, you’ll receive $100 USD worth of ℓUSD in exchange. The LINA stake needs to be 5x the value of the ℓUSD a user builds. With This created ℓUSD being backed by your stake, there’s also an extra mechanism that kicks in during this process. While you’ve received a loan for ℓUSD, your collateralized LINA tokens also earn interest at a current average rate of 90% APY. On top of that, user staking with BUILDR can expect to receive a part of fees collected on the Linear Exchange. Both the stake and fee rewards are paid to users every week. But users cannot receive their reward until one year of staking. With the staking reward of LINA paid to users in LINA, fee rewards are deposited separately as ℓUSD. This process can also be done in reverse and users can choose to Burn ℓUSD purchased on Exchanges to unlocked staked LINA in the dApp, or use the Swap feature to exchange Liquid…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
