Linear Finance X Crypto Talkz AMA Recap 24/11/2021

Linear Finance X Crypto Talkz AMA Recap 24/11/2021

Nov 25, 2021 · 9 min read · cat

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We’d like to say thanks to all of you who joined the AMA hosted by Crypto Talkz on Wednesday 24th November. We appreciate all your support. This is a recap of the entire session, in case you missed it!

Host: Hello Chat, Welcome to another exclusive Crypto Talkz AMA

Kevin Tai: Hello everyone

Host: Hello and welcome to our community, I’m glad you here to join the AMA today!

Kevin Tai: Thanks for hosting and it’s great to meet such a big community

Host: Before we proceed, please introduce yourself to our community

Kevin Tai: Hi everyone, I am the project lead for Linear Finance and have been working on the project for over 1.5 years. Before crypto, I spent a number of years in traditional finance at a number of bulge bracket banks. At the same time, I was also mining crypto and then soon invested in DeFi projects and started Linear Finance.

Host: A great start !! So, without making a delay…Let’s start our AMA with a basic Introduction Segment


Host: First, Can you briefly introduce Linear Finance ? and from where you get the project name? What does it mean to you? And why did you choose this name for your project?

Kevin Tai: Linear Finance is a cross-chain compatible, decentralized delta-one 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. Linear Finance’s protocol is supported by a native ERC-20 Linear Token (LINA). The utility of this token within the ecosystem is used for — staking in the collateral pool, liquidity mining, governance, and investing in synthetic “Liquids” on investment assets with infinite liquidity and no slippage. As our assets in our exchange are synthetic versions of the underlying, any movement in the price of the underlying equates to a 1:1 movement in the synthetic asset… As such, it’s a Linear payoff and that is how we came up with the name.

Host: Tell us, What is your mission and vision to build this project? What do you want to achieve through your project in the future?

Kevin Tai: When users are trading synthetic assets, we believe they are looking for a trading experience that was seamless and efficient to use and not be subject to high gas fees while also being able to use our Liquid assets in the ecosystem. This is what we are offering. It’s the main reason that we operate on Binance Smart Chain. If you use our protocol, you will find that the transactions are fast and cheap across any activity that you want to do.

Host: Then, What strengths does Linear Finance have to compete with competitors?

Kevin Tai: The main Linear Finance features include

1. Minimal transaction fees and instantaneous execution at every touchpoint of the protocol

2. A seamless experience for all users, no matter if you are a staker, trader, or market maker

3. Fairness and transparency throughout Linear Finance’s trading exchange, reducing systemic risk

4. Built on Binance Smart Chain with cross-chain compatibility to maintain connectivity with the DeFi ecosystem.

5. Creative thematic exposures in addition to standard Liquids such as digital assets, commodities, forex, and crypto market indices.

Host: So, How important is the community to your project? and How can we collaborate or help share tokens for the development of the project?

Kevin Tai: The community is of the utmost importance for the protocol as they consist of the stakers, holders, traders, and others who use and support the protocol in one way or another. Originally when the protocol was built, the goal was to always involve the community in the development of the protocol going forward and we are soon going to be able to realize this when the DAO is officially launched. As such, I look forward to working with the Linear community to implement the changes they would like to see….

Host: And also, Could you please provide some progress on your Roadmap and what results has Linear Finance achieved so far?

Kevin Tai: Linear is a little over a year old and I think we have gotten quite far. We have launched our Mainnet product and have expanded liquidity over a number of top-tier exchanges. Our partnerships continue to grow as we expand the use cases for LINA and our stablecoin LUSD.

Fresh off the press. These are the major milestones we are looking at going forward for the end of 2021 and 2022. Certainly, there will be smaller milestones and partnerships we announce and implement along the way

The team is pushing on our Kusama integration through MoonRiver and it’s a monumental task as we are literally building another synthetic asset protocol for Kusama. Afterward, the team will work on the Polkadot integration through MoonBeam, and thereafter a portion of the tech team will work on a L2 solution for our users and will look to utilize ZKRollup. For our existing Linear product, there will be a number of cosmetic changes to the Dapps that the users will start seeing within a few weeks, additional asset listing, and additional functionality. More details to be released soon.


Q1. Twitter ID: @Lidiamga

Linear Finance has 2 different tokens on its platform: LINA and LUSD. Can you explain to us what the relationship between these 2 tokens is? What are the functions and roles of these tokens in the Linear Ecosystem? Why create two tokens on the same platform at the same time?

Kevin Tai: Yes, the Linear protocol requires that users stake their LINA token to “build” LUSD and then use that LUSD to trade in our exchange OR be used elsewhere in other DeFi protocols. These stakers serve as the counterparty to the traders on our exchange and in exchange, they earn weekly staking rewards in both locked LINA and LUSD. We need both of these tokens for the protocol to function!!

Q2. Twitter ID: @MamSaheb

What marketing strategy would you apply to get in better communication with non-English communities and those that are not familiar with CRYPTO?

Kevin Tai: This is an interesting question as we have a number of international and diverse communities and on the Linear end, we have international partners that work on translating marketing materials into the relevant languages and provide support. We are incredibly proud of our teams for doing this and give them a ton of credit for the success of Linear through various countries and regions.

For those that are not familiar with crypto, we work on walk-through or educational materials to give an introduction of the protocol….. Users will soon see educational materials coming from our CEX partners.

Q3. Twitter ID: @hasanra55276782

Binance Smart Chain is among the shining stars because of Ethereum’s problems. However, why did you choose BSC when there are other alternatives, why not Polygon, Cosmos, Solana, etc?

Kevin Tai: It’s quite amazing that we have seen such a large number of L1’s scale up with ecosystems in such a short amount of time. Everyone is trying to solve the scaling and high fees on ETH. I think people have to realize that when we started Linear, the number of viable L1 options was quite limited and Binance Smart Chain was growing rapidly with a large number of DeFi protocols going to BSC. So, a viable ecosystem is needed and we need to go where the party is at…. this is why we chose BSC. The team is focused on cross-chain/multi-chain so be on the lookout for other implementations coming soon!

Q4. Twitter ID: @NoAbsolutelyNa

With DeFi 2.0 and 3,3 being hot topics lately, I was wondering — is Linear considering working with other 3,3 projects or perhaps exploring how to implement to the protocol in some way?

Kevin Tai: We are quite aware of the latest and most popular DeFi trends and we will follow if possible and on this front, we will be expanding our multi-collateral staking pools to LP tokens. For the 3,3 projects, we are still looking at ways how we can integrate this into our protocol. So this is an initiative that we will continue exploring

Q5. Twitter ID: @Lidiamga

I read that Linear will be under LinearDAO’s management of platform parameters and design. What kind of decisions can DAO Make? Will linear be completely decentralized and managed by its users? Is it currently selling-focused? When will it give full control to the user?

Kevin Tai: Upon the launch of the LinearDAO, users will be able to make amendments to a number of parameters on our Buildr and Exchange in addition to proposing what assets to list. This is just the first step as we will continually decentralize and allow the community more control over the protocol. This is always a work in progress and we will see how the community manages the protocol!


Q. Considering that all synthetic assets are backed in LINA, How you guarantee that the changes in the price of the Lina will not affect the value of the synthetic assets?

Kevin Tai: Yes, in order to compensate for the changes in the price of LINA, we have P-ratio to ensure that stakers are overcollateralized when they are building LUSD. We also have a liquidation mechanism in place.

Q. Smart contracts are known to be susceptible to errors, bugs or hacks. So how is this Project security system composed? In addition, has any audit report been made by sources external to your project?

Kevin Tai: Yes, smart contracts are susceptible to bugs and errors and we are constantly working on the protocol and pushing out updates to the code in order to eliminate bugs and give our users a better UI/UX experience. For audits, our contracts have been audited by SlowMist.

Q. Which area are you focusing on right now?(DeFi,Stake,Dapps..Yield Farming, NFTs, Gaming) and what is your target for this year?

Kevin Tai: At Linear, we of course are focused on continuing to build in DeFi and expanding our ecosystem through various partnerships. We want users to use LUSD or LINA as part of their DeFi Legos. A perfect example of this would be our latest partnership with OpenDAO where users can stake LINA, earn LINA, and then also build USDO, another stablecoin.

Q. Southeast Asia is a very vibrant market and there are many new platforms under development. So what do you think about Southeast Asia and do you have plans to grow there?

Kevin Tai: Southeast Asia is certainly a growing and emerging market especially in crypto. Wallet sizes continue to grow and users are becoming more in tune with various DeFi protocols. We are already listed on an Indonesian CEX and will continue looking to find opportunities to expand liquidity in the SEAsia markets.

Q. Can you explain to us about the #LinearVault? How the process works and how it can give passive income to all the users? I can see that we can earn 3 tokens here, $LUSD, $LINA, and $BUSD?

Kevin Tai: Yeah, we launched our Linear Vaults a few months ago so that users can use LUSD and their LUSD/BUSD LP tokens to generate additional yield. It’s a solid alternative to earn yield rather than using the LUSD for trading!!

Host: Thanks for diving us deeper into Linear Finance

Chat thanks also for those great questions

Kevin Tai: Thanks for hosting!! and we welcome everyone to join us in our Discord or TG channels for further information!

About Linear Finance

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.

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