What Is Linear Finance and How It Zig Zags Legacy Core Banking

• Linear Finance is designed to compete with the traditional Legacy Core Banking Systems.
• It is a cross-chain protocol for delta-one assets. 
• LINA and ℓUSD are the native currencies of Linear. 

Banks are presently suffocated by their traditional and decades-old back-end platform. They support primary bank services such as new account opening, loan processing, balance checking, money deposits, user verification, and more. However, with the rising advancements in the financial sector with DeFi and cryptocurrencies, banks are finding themselves in a corner and left out. In response to the advancements in the financial sector, there is a growing need for a platform that allows users to access both creative cryptocurrencies and traditional financial products. 

What is Linear Finance?

Linear Finance is a cross-chain compatible and delta-one assets protocol. It combines innovation and experience in crypto projects with the knowledge of traditional financial management firms to become the first Ethereum-based cross-chain financial project.

Liquids

Liquids are the project’s most ingenious idea. These are synthetic assets which include commodities, thematic indexes, and spot cryptocurrencies, enabling users to build a diversified portfolio and manage and trade them without the risk of slippage. 

What are LINA and ℓUSD?

LINA

LINA is the native token used by the network for governance and making decisions. Users also need them as base collateral to build liquids, use the various dApps suite, and earn trading fees and staking rewards. 

LUSD

The stablecoin (liquidity USD) is native to Linear Finance and can be used to pay loans on the liquidity protocol. Coin holders can access the market indices and commodities. It is also the base currency for Linear Exchange. 

Products by Linear Finance

Linear Buildr

This dApp allows users to create Liquids by keeping LINA as the base collateral. When creating Liquids, users are required to provide collateral value that exceeds the value of the Liquids they intend to create, ensuring a sufficient buffer for security. The pledge ratio was kept at 500% initially but promised to be kept at an optimized value which will be decided through community votes. The most significant use of Buildr is to allow users to build ℓUSD by staking LINA coins. 

Linear Exchange

The platform was designed to expedite financial transactions, allowing them to be completed within seconds, compared to traditional networks that may take days. ℓUSD tokens are the base token for Linear exchange, where they can be used to buy the liquid versions of indices, commodities, and cryptocurrencies. The platform provides infinite liquidity and enables transactions with zero slippage. 

Linear uses Ethereum’s tools and infrastructure but the actual creation of Liquids is done on other blockchains, thus, reducing gas fees and fast transactions. 

Linear Swap

The platform provides asset-swapping capabilities for assets such as LINA, ℓUSD, or Liquids across multiple blockchains, enhancing liquidity and facilitating cross-chain transactions. Linear currently supports Binance, Ethereum, and Polkadot. The platform also enables connectivity across various DeFi apps built on different blockchains. 

Linear Vault

This platform is designed for users to earn passive income by staking their ℓUSD coins or LP tokens into liquidity pools. The income comes from the token’s inflation and is paid weekly on a pro-rata basis. 

Linear DAO

The community of LINA token holders can propose changes and features they would like to see in the protocol. The purpose is to serve the protocol and maintain its good health and growth. After a proposal is made, it goes through a review, and voting is done to decide if it will be implemented or not. 

Summary

Linear Finance completes transactions in a few seconds compared to other traditional financial systems and even other blockchains. Its inter-chain compatibility allows users to seamlessly access and utilize various DeFi apps across different blockchains. It has a suite of dApps that provides robust powers to the user. The plans of integrating with Polkadot and other innovative features will surely have a positive impact on the platform’s growth and token price.