Linear Finance Partners With Band Protocol To Secure Synthetic Asset Creation and Exchange

Linear Finance Partners With Band Protocol To Secure Synthetic Asset Creation and Exchange

Nov 16, 2020 · 4 min read · cat

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When we started Linear Finance, our goal was to build a synthetic asset trading protocol that would actually be used to trade synthetic assets seamlessly and effectively. We were aware of the numerous problems existing solutions face — in particular, the problem of front running caused by traders taking advantage of slow price updates. Very early on we identified this as another opportunity to offer a superior solution than existing synthetic asset protocols in the market. Needless to say, the Linear team has extensive resources to conduct due diligence and research on oracle design.

With this in mind, we’re super excited to announce that we have partnered with Band Protocol, the emerging leader for cross-chain decentralised oracles. Band Protocol is a decentralized, blockchain agnostic, community curated oracle to fetch trusted, high quality information ‘off chain’ for dApps ‘on chain’. We have identified Band Protocol to be one of the strongest solutions for scalability and our data needs including:

  • Minimised Network Risk
    Band Protocol uses BandChain, a high-performance blockchain and decentralized oracle network built for all oracle computations. With near-instant finality and a short blocktime of 2–3s, by using Band Protocol we are minimising the attack vectors commonly faced in Ethereum-based oracles such as frontrunners, congestion and excessive fees.
  • End-to-End Customizability For Accuracy & Real-Time Data
    Our developers can create custom decentralized oracles on BandChain that bridge any external data source or API onto the blockchain, allowing Linear Finance to expand product offerings and synthetic assets without restriction. This includes specifying key parameters such as updates frequency which can reach 30s-60s and also aggregation methods including TWAP and VWAP among others.
  • Truly Decentralized Oracle Mechanism
    The BandChain decentralized oracle network currently has 68 validators operating nodes, who are economically incentivized to stake BAND tokens to fulfil data requests and uphold the highest degree of security guarantee. The oracle network operates without any centralized whitelisting processes or central authority that could introduce bias or single points of failure that are a step backward from decentralized technology.

We are thrilled to work with Band Protocol for a number of reasons. Band Protocol offers high throughput and latency with low block times without compromising on cost effectiveness. Not only this, but Band Protocol already supports a variety of price feeds that will undoubtedly contribute to our synthetic asset offerings, currently supporting over 125+ crypto assets, 2 commodities (gold and silver) and 13 exchange rates. However, most importantly, Band Protocol is a key partner to address the problem of front runners, making our protocol safer for traders and stakers alike.

We are extremely excited about integrating Linear Finance with Band Protocol, a dynamic, cost effective oracle that can fetch secure price feeds. Ultimately, we’re confident that this partnership enables us to integrate with other great projects to build a synthetic asset trading protocol that is faster, safer, and cheaper than existing alternatives. We look forward to sharing more integration details including our custom oracles built with Band Protocol upon our Mainnet launch coming very soon.

Drey Ng, Co-Founder at Linear Finance said: “Front running is a fundamental problem not just for current synthetic asset trading but all trading in general. We know that even if Linear offers all the benefits of cross-chain compatibility (such as speed and cost), and a superior creative selection of synthetic assets, trading will still be meaningless for users if trades can be front run. The whole system would still be fraught with risk. By collaborating with Band Protocol for our BSC integration and onwards, together we are able to build a safer and scalable trading protocol.”

Soravis Srinawakoon, CEO and Co-Founder at Band Protocol said: “Band Protocol is thrilled to be chosen by Linear Finance as an oracle partner for their upcoming Mainnet launch. The partnership will begin with securing their synthetic asset protocol on Binance Smart Chain and expansion to other major blockchain platforms. Both teams are also researching extensively into mitigating the frontrunner problem for all synthetic asset trading platforms.”

_About Band Protocol
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Blockchains are great at immutable storage and deterministic, verifiable computations — however, they cannot securely access data available outside the blockchain networks. Band Protocol enables smart contract applications such as DeFi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle. Band Protocol is backed by a strong network of stakeholders including Sequoia Capital, one of the top venture capital firms in the world, and the leading cryptocurrency exchange, Binance.
Website]( _| Whitepaper | Telegram | Medium | Twitter | Reddit | Github

_About Linear Finance
Linear Finance is the first cross-chain compatible decentralized synthetic asset protocol to create, trade, and manage synthetic assets (Liquids), and acts as a faster, cheaper, safer, and easier to use alternative compared to other synthetic asset protocols. Our goal is to democratize investment assets and provide creative thematic exposures to our users while also solving existing scaling/high gas fee issues and increasing composability. Linear Finance’s strategic investors include NGC Ventures, Hashed, Genesis Block, CMS Holdings, Alameda Research, Kenetic Captial, Evernew Capital, Soul Capital, Black Edge Capital, Moonrock Capital, DuckDao, Vendetta Capital.
Website]( _| Whitepaper | Telegram | Medium | Twitter | Github