Mar 4, 2021 · 2 min read · cat
March 10th will mark Linear’s inaugural launch of their synthetic passive index series with the introduction of synthetic index tokens from Xangle. Users of the Linear Finance platform will be able to trade the Xangle Index Tokens, digital asset indices designed to track the performance of the largest and most reliable digital assets with selective weightings backed by institutional research and due diligence. The launch of Xangle’s index tokens reiterates Linear’s commitment to its users to bring to market-investable indices that are transparent, innovative, structurally sound, and designed by teams with years of institutional financial experience.
The Xangle Indices to be listed on Linear.Finance are synthetic “Liquid” versions of the Xangle Large Cap Index (ℓXLCI) and the Xangle Blue Chip Index (ℓXBCI). The Xangle Blue Chip Index will track the performance of the most reliable digital assets non dependent of the market capitalization of the largest digital assets. The Xangle Large Cap Index tracks the performance of the largest digital assets by market capitalization and uses Xangle Credibility Rating (XCR) data as the adjustment factor for the market capitalization to reflect the credibility of each digital asset.
To objectively evaluate a project’s credibility, Xangle evaluates projects based on various criteria such as: Company and Team, IR and Disclosure Practices, Financial Sustainability, Token Governance, Business Performance, Technical Audit, and Legal Memo. The evaluation for each criteria is quantitatively measured via a grading rubric and calculated into a final credibility grade. This provides objectivity and a quantitative credit rating model without bias.
From James Kim, Co-Founder of Xangle “Indices are proven important vehicles for investors not only to catch the sentiment of the market but also help investors by providing more accessible investment strategies without heavy analysis & management into each respective token. Our index launch kicks off our credible asset validation process integrated with the representative tokens in the market. We plan to expand our indices with more interesting themes backed by data.”
From Kevin Tai, Co-Founder and CEO of Linear Finance “We are proud to partner with Xangle to bring to our traders the ℓXLCI and ℓXBCI indices. These indices are built with care and backed by endless amounts of research from the Xangle team. As such, they are unique and differ from the equal weighted, market cap weighted indices you find on other synthetic asset providers. At Linear, we strive to bring institutional level quality assets, transparency and information to our users, and the Xangle indices are the first of many to come.”
Linear Finance is a cross-chain compatible, decentralized synthetic asset protocol to cost-effectively and quickly create, trade, and manage synthetic assets (Liquids). Linear achieves this by leveraging other faster public blockchains as an imminent Layer-2 solution. This brings not only scalability and cost-savings vs existing solutions but also composability, bridging DeFi assets across blockchains. The utility of the LINA 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.
Xangle has been tackling information asymmetry in the crypto asset industry with their disclosure issuance platform since 2018. The platform collects the widest scope of project-related on-chain and off-chain information, verifies it, and displays it all in one place as disclosures, or announcements. With Xangle, traders and investors gain unparalleled access to all-inclusive real-time information that they need from over 2,000 crypto assets. Xangle removes the barriers between blockchain projects and their investors by enhancing transparency in the industry. This will ultimately legitimize the crypto assets industry in the eyes of government regulators, those in the traditional finance sector, and the general public.