Jan 19, 2022 · 3 min read · cat
If you’ve been hearing a lot about DeFi, you may be hoping to venture into the space but are not sure of the how, what and where? Well, before you take the leap into trading and all the advanced stuff, why not begin with earning a passive income in the Linear Ecosystem? In this article, we take a look at some ways through which you can do so!
The first way to earn income on the Linear platform is by staking. Staking involves locking up your tokens on the platform to earn rewards — much like how you can earn interest by depositing your money in the bank…well, in the past at least. When you stake LINA tokens in Linear.Buildr, you are entitled to both staking rewards in LINA and pro-rata transaction fees in ℓUSD. Transaction fees refer to those generated whenever a user exchanges one type of Liquid to another using our Linear.Exchange platform and each user pays a 0.25% transaction fee for each transaction. Assuming you fulfill conditions such as a pledge ratio of 500%, you can claim these weekly rewards every Wednesday on Linear.Buildr! The amount of rewards you receive will depend on the percentage of the debt you have relative to the total debt pool. So in short, the more debt you build, the more rewards! To learn more about the mechanisms at work, check out our blog post on how staking rewards are determined!
Linear x OpenDAO
In addition, Linear also has a partnership with OpenDAO, and recently we have launched various initiatives to expand the possibilities of staking LINA! In a process known as “yield minting”, users can stake the LINA token on OpenDAO’s OmniVault (https://omnivault.ocp.finance), earn Auto-Compounding rewards in LINA, and mint $USDO (OpenDAO’s stablecoin) at the same time. The LINA reward generated will be added back to your underlying position on OpenDAO and staked to generate more LINA!
In addition to the staking program, Linear is well-integrated in the DeFi space and you can also become a liquidity provider for the LINA token or ℓUSD stablecoin to earn additional yield. A liquidity provider deposits 2 tokens, each of equal value, into a liquidity pool, and in return, they are entitled to enjoy a portion of the trading fees from the trades that happen in their pool.
Linear x Omni Consumer Protocols Price (OCP)
Recently, we’ve introduced a new liquidity pool in partnership with OCP — the BUSD/ℓUSD pool! Add liquidity to this pool and stake the Liquidity Provider (LP) token to farm LINA rewards! 100% of trading fees go to LP providers.
Linear x Sifchain
Similarly, you can also add liquidity to the ROWAN/LINA liquidity pool on Sifchain ( https://dex.sifchain.finance/) and earn an Annual Percentage Return (APR) of 100%. Under Sif’s Expansion Liquidity Mining Program, the community will vote once every 4 weeks for 5 pools to enjoy 300% APR!
As highlighted above, Linear is more than a trading platform. It is a well-developed ecosystem with integrations into the wider DeFi space and presents many options to generate a passive income to work towards your financial goals. Happy earning!
Linear Finance is a cross-chain compatible, decentralized delta-one asset protocol that allows users to get synthetic exposure to various assets, including cryptocurrency, commodities, and market indices. Users can utilize our cross-chain swap functionality to instantly swap assets across leading blockchain environments and DeFi protocols with unlimited liquidity and zero slippage.