The cryptocurrency landscape continues to change with the arrival of many new projects. Most new projects take place within the world of decentralized finance (DeFi). One of the newest projects in this landscape is Linear Finance (LINA).
This project facilitates the transition from traditional financing to DeFi platforms. For example, you can trade in traditional assets such as coffee, oil, currencies or stocks. In this way, the traditional financial world is acquired with the blockchain world.
In this article we explain more about Linear Finance, such as what it is and how it works. We will of course also tell you where you can buy and store the Linear Finance token, LINA.
- 1 What is Linear Finance?
- 2 The team behind Linear
- 3 Linear Finance use cases
- 4 Linear Finance Token (LINA)
- 5 Linear Finance and Tellor
- 6 How can I buy Linear Finance (LINA)?
- 7 How can I save LINA?
- 8 Is it smart to buy Linear Finance (LINA)?
- 9 The course of Linear Finance (LINA)
- 10 Linear Exchange
- 11 LinearDAO
- 12 Conclusion
What is Linear Finance?
Linear is a distributed protocol that supports multiple chains and majors with synthetic assets. The platform is not conservative and works to democratize and improve the uptake of traditional and digital investment assets. One of the ways the project does this is by enabling investors to save on transaction costs and shorten the time it takes to enter an investment position.
In addition, Linear protects investors from high asset prices by providing a fair market value. The network is built on Ethereum with activity on the platform powered by LINA, an ERC-20 token. With most DeFi platforms built on the Ethereum blockchain, the protocol maintains access to this ecosystem by creating synthetic assets on Ethereum Virtual Machine (EVM) compatible chains such as Binance Smart Chain (BSC).
According to the project’s white paper, it focuses on delta-one and synthetic assets. In the project related to derivatives, delta-one means that a change in the price of the underlying asset produces the same change in the product.
Synthetic assets, on the other hand, are assets that derive their value from other assets. Examples of synthetic products are futures and options. In the crypto world, synthetic assets allow investors to interact with cryptocurrencies without necessarily owning them.
These assets are also known as liquid assets because they can be easily converted into cash. The Linear protocol supports liquids in cryptocurrencies, crude oil, coffee, stock indices, and e-sports, among other assets you could invest in.
The team behind Linear
Of course, it is important to look at who is leading a crypto project. This often says a lot about the chance of success, because a strong team can achieve a better result.
- Drey Ng . The project is led by Drey Ng and Kevin Tai. Drey holds a Master of Science degree in Computer Science from the University of Hong Kong. He also happens to be the product manager at Liquefy, a technology solutions company guiding innovative companies through digitization and blockchain technology.
- Kevin Tai . Kevin has an MBA in corporate finance and real estate from Harvard Business School. In the past, he served as Vice President of Structured Products at Credit Suisse.
Linear Finance use cases
You now know what Linear Finance is, but you may not yet know what you could use it for. That is why we would like to discuss the use cases of this project with you, so that you might also start using it yourself.
Solution for scaling layer two
The majority of DeFi systems tend to use Ethereum. However, other established blockchains are trying to get their share. But due to the incompatibility of decentralized systems, there is a need for a bridge.
Linear acts as the chain that brings all networks together. As a layer-two solution, the protocol can connect all major chains together while mitigating the risks of such a process.
Providing Cross Compatibility
By cross-compatibility, we mean the collaboration between different blockchains and projects. The ability of Linear to provide cross-compatibility allows the project to provide:
- Low transaction costs
- High transaction speed
- Fast price discovery
Low transaction costs
Since transactions are not performed directly on the Ethereum blockchain, the decentralized delta-one protocol estimates that its users save up to 90% on Gas costs when using the network.
High transaction speeds
Transactions performed according to the Linear protocol, from receiving, staking, and buying to burning, are settled almost immediately. In addition, the protocol is ideal for use in circumstances where failed transactions must be avoided.
Fast price discovery
The platform uses oracles with block times of a few seconds. This allows traders and users to react to new prices in real-time. So there is fairness, security and transparency between the users.
Linear Finance Token (LINA)
LINA is used on the network to cover debt, as well as physical and digital assets. Holders of the token have access to Linear USD (LUSD), which can be used to interact with assets on the Linear exchange. In addition, token holders contribute to managerial decisions such as which assets to list and distribution models.
The token is used as collateral in the creation of synthetic assets using Buildr, a blockchain-based liquidity management platform. While the collateral must be another cryptocurrency, such as Ether (ETH), Linear takes a hybrid approach where 80% of the collateral consists of LINA and 20% in Ether or another cryptocurrency.
Earn Bet Rewards
LINA bettors earn rewards based on a pro-rata exchange fee or based on inflation rewards. With the first option, the rewards are earned on a weekly basis, and the bettor’s pledge ratio is taken into account in the calculation.
Gamblers also earn rewards through yield farming, a positive change in the pledge ratio and the provision of cash on the linear pool.
Linear Finance and Tellor
Linear is partnering with Tellor to implement Ethereum oracles. Simply put, an oracle provides verified external data to a smart contract. Tellor uses it to provide high-quality off-chain data through hashing and data signing. Tellor was recently launched on the Linear network. Teams from both platforms are working on the security of LINA and other crypto prices on the Ethereum platform.
How can I buy Linear Finance (LINA)?
There are several ways to get Linear Finance (LINA). It is best to buy LINA from a centralized crypto exchange, such as Binance, Coinbase, Coinmerce or Bitvavo. You probably also know that there are many crypto exchanges. However, it is not wise to just choose a broker. This is partly due to safety and the costs involved. Some exchanges are not safe enough, and others charge sky-high transaction costs.
We recommend that you buy LINA from Binance or Bitvavo because you can buy this cryptocurrency here for the best price and security. These exchanges are among the largest, so they can always offer high liquidity. This ensures that you as a buyer and seller get the best price for your crypto coins.
It is of course also possible to buy LINA from a decentralized exchange (DEX) such as Uniswap or Sushiswap. However, that is not recommended if you are still a novice crypto trader. This is because you have to go through quite a few steps before you have actually purchased your coins. The chance that things will go wrong is many times greater than with Binance or Bitvavo.
How can I save LINA?
If you want to store LINA in a wallet, you have to make sure that you choose a wallet that supports LINA. Fortunately, it is an ERC-20 token, which means that it is supported by almost all wallets. These tokens run on Ethereum, which is the most widely used blockchain for crypto projects.
You can then store LINA in both a hot wallet and a hardware wallet. A hot wallet is often linked to the crypto exchange where you buy LINA, although this is not the most secure option. A hot wallet is always linked to the internet, which means that hackers could gain access to it at any time.
If you want to go for the most secure storage option, it is best to choose a hardware wallet. As the name suggests, this is a wallet in the form of a USB stick. You can completely disconnect this wallet from the internet. The moment you have not linked the wallet to a computer, it is impossible for hackers to get into the wallet. Of course, you still have to store the wallet in a safe way. The most popular hardware wallets are from Ledger and Trezor.
Is it smart to buy Linear Finance (LINA)?
Whether it is smart to buy Linear Finance mainly depends on the current price of LINA. The moment you think that LINA is undervalued, and is actually worth more than its actual value, it may be the right time to buy LINA. However, it is also possible that the price is much too high. This could be due to a strong bull run or hype around LINA. In that case, it is better to wait until the price has dropped so that you can purchase LINA at a cheaper price.
To determine whether the right time for purchase has come, you can use technical analysis. You then calculate by means of the rate whether it is smart to buy LINA. It is also possible to perform a fundamental analysis, where you will look at everything about LINA. Think of the functions of the project, the team and the market in which the coin is located. Since September 2021 you can now also buy your LINA on Bitvavo. Do it below.
The course of Linear Finance (LINA)
It is possible to view the LINA price at any time. In this way, you can quickly and easily see whether it is smart to buy or sell LINA. The exchange rate shows the value of LINA in the form of US dollars. It is also possible to display the price in euros or Bitcoin.
You can use different websites for this. We are happy to recommend CoinMarketCap.
The exchange offers to the trade various synthetic assets. It has almost instant transaction times with the help of blockchain technology. Linear. Exchange leverages the infrastructure of Ethereum and the high transaction times of other decentralized systems.
In addition, it supports commodities, cryptocurrencies, market indices, foreign exchanges, and thematic exposures and aims to expand into the stock market. This offering not only minimizes the risk of investing in cross-assets but also broadens the choice of investable assets. It provides users with the ability to manage their own risks, as well as additional functionality for analysis.
Linear is governed by a distributed autonomous organization (DAO) known as LinearDAO. It is responsible for managing the core designs of the platform, as well as system parameters such as LINA rewards and frequency, commitment ratio, new feature roll-out, technology roadmap and transaction cost allocation.
Users can vote for who they want on the board using their tokens. So you can compare this with the elections we have for the House of Representatives. In this way, Linear Finance is always driven by individuals that the network believes are best suited for this task, making it a democratic project.
As more and more projects strive to make the DeFi world more attractive to investors in crypto and traditional financial assets, Linear Finance has already taken a big step in this world. Offering a complete platform including an exchange with cross-chain compatibility, the protocol brings a big difference to the DeFi scene.
In addition, the low rates, high transaction times and fast price discovery allow users to have their tracked assets in real-time. The delta-one approach means that traders get the absolute value of the underlying asset, as there is a one-to-one relationship with the value and/or the movement of the prices.
After reading this article, you can decide for yourself whether it seems wise to invest in Linear Finance (LINA). Of course, the best way to do this is by conducting solid research yourself, such as with fundamental or technical analysis. After all, you want to make a big profit from your investment, right?
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com