Linear Finance Fundamental Analysis

Linear Finance is a modern boom of the DeFi platform that hopes to increase inclusiveness and publicize access to investment assets (digital and traditional). The platform hopes to become a disruptor in the industry with its non-custodial delta-one asset protocol of LINA.

By combining the technical experience from the crypto industry with the vast knowledge in the financial industry, the team created one of the first DeFi projects built on the Binance Smart Chain (“BSC”) with EVM cross-compatibility. However, the linear platform will allow users to build and manage spot or portfolio exposures with an extensive variety of digital and traditional financial projects.

What is Linear?

Linear is a decentralized delta-one asset protocol that hopes to increase inclusiveness and publicize access to investment assets (digital and traditional). It can create instantly synthetic assets with unlimited liquidity.

Convenience

LINA protocol provides convenience to its users to get fast transactions with low transaction fees. It is convenient for different LINA users whether they are a market maker, staker, or trader.

Transparency

The transparency offered to LINA users helps to avoid front-running because every transaction made within the exchange is made transparent to all users. It helps to decrease systemic risks on the part of each network member.

Ethereum-based

LINA protocol is also compatible with other DeFi projects as it is built on an Ethereum network that is cross-chain compatible. Now users only need to open an Ethereum-based wallet and an EVM-compatible wallet.

Maximized DeFi Support

The whole linear platform is built on two separate blockchains, one is Linear DAO and the other is LINA tokens that are based on Ethereum. This helps to make it easy for the platform to communicate with other DeFi protocols.

Affordability

LINA has a Builder app and Exchange function through smart contracts on top of EVM-compatible blockchains. This allows Linear to maintain the building and trading of Liquids at very minimal gas fees.

Fewer risks of front-running

The block time confirmation for other EVM-compatible blockchains is much more active than Ethereum. This enables users to create their Liquids at more updated prices through the help of oracles. This is how the risk of users front-running the exchange becomes much lower.

LINA Network Tokenomics

The Linear (LINA) delta-one asset protocols are made possible with the help of the LINA token. The LINA token has a few purposes including payment, staking, governance, liquidity mining, and investing in Liquids.

Creating LINA token

LINA users have to pledge 100% of their digital assets to create its token to ensure that the Liquids are backed by an underlying asset. This creates stability from possible volatile synthetic assets.

Collateralization

Linear is a decentralized delta-one asset protocol that also has a decentralized app named Buildr. Buildr has a hybrid approach in case of any collateralization.

It will work when the users will deposit LINA and other cryptocurrencies to obtain the synthetic asset. The mixture of LINA and other cryptocurrencies should have a ratio of 80:20 where 80% of the collateral must be LINA and the other 20% is other cryptocurrencies.

LINA Rewards

LINA offers new yield-making opportunities for anyone based on their customized financial goals.

Yield Farming Campaign Rewards:

The explosion of yield farming in the DeFi market has also added the basic element of yield farming. Yield farmers will help manage Linear’s debt pools and the whole platform, itself. During the first two years of the platform, active users on the exchanges can receive token bonuses. These token bonuses will help be transferring into other liquidity pools like Balancer, Curve, and Uniswap.

Exchange Fees Rewards:

The initial transaction of the fee received from users on the linear delta-one asset platform is set at 0.25%. After this, these fees are then divided among LINA stakers whose Pledge Ratio (P ratio) is above the threshold. LINA also offers rewards to non-LINA stakers that depend on the future decision of the community’s governance council.

Inflationary Rewards:

The starting inflation rate of LINA is at 75% which will decrease weekly by 1.5%. Stakers will be able to get such rewards weekly as well if their Pledge ratio is above the threshold.

Where can I trade $LINA?

Users can now trade $LINA on exchanges like Bitmax, MXC, Bilaxy, Bibox, Hotbit, and Hoo.

Linear Exchange

Linear is building their exchange by promoting faster trade activities with almost limitless liquidity.

As of now, to decrease transaction settlement timeframes as quick as one second every transaction linked with instantaneous finality, Liquid is collaborating with other public blockchains.

The partnering of linear with oracles has solved many problems related to front-running as they increase the capability of fresh prices on a frequent and fast basis at much lower prices for the underlying assets.

Conclusion:

With the rising gas prices in Ethereum, Projects such as Linear is a promising addition to space as it seeks to go around these problems.

With the help of the linear platform, users can easily build and manage investments; they can now enjoy fast and affordable profit-building opportunities.

However, it will be more exciting to observe what the Linear Finance team will be releasing in the months to come.