Feb 16, 2022 · 7 min read · cat
On February 11th, Gate.io’s International Community hosted our project lead, Kevin Tai for an AMA session. Thanks to everyone who showed up! For those of you that couldn’t make it, please find below a recap with all the highlights!
Tom | Gate.io: Hello everyone! We will now start today’s AMA with Linear. I would like to welcome Kevin Tai who is the Project Lead for Linear. Kevin, how are you doing today?
Kevin | Linear: Doing very well… It’s a pleasure to be here! And thank you very much for hosting an AMA today
Tom | Gate.io: My pleasure, looking forward to this conversation. Let’s start with… Can you give us a brief introduction to Linear Finance?
Kevin | Linear: Sure thing. So we have been working on Linear Finance for over the last 1.5 years. Linear Finance is a cross-chain compatible, decentralized synthetic asset protocol to create, trade, and manage Liquids which are synthetic versions of digital assets, commodities, and indices. We are built on ETH and BSC and act as a faster, cheaper, safer, and easier to use alternative compared to other synthetic asset protocols.
Tom | Gate.io: Great stuff! And how does LINA fit into this?
Kevin | Linear: LINA is Linear Finance’s utility and governance token which is both an ERC-20 and BEP-20 token. LINA can be used for — staking in the collateral pool, liquidity mining, governance (Linear DAO), and investing in synthetic “Liquids” on investment assets with infinite liquidity and minimal to no slippage. Essentially, users stake LINA onto our Buildr platform, build LUSD, and then can use that to trade the synthetics on our exchange.
Tom | Gate.io: Can you further elaborate on Liquids? What are they? Where can the community trade them?
Kevin | Linear: Liquids are synthetic versions of your favorite assets. They range from popular crypto like LBTC, LETH to indices like LDEFI (DEFI Index), LPLAY (NFT Index) from our friends at PieDAO to commodities and currencies. You can trade all of our Liquids on the Linear Exchange, you can find the link below:
Tom | Gate.io: Great, thanks for sharing. And, what are the benefits of LINA being cross-chain compatible?
Kevin | Linear: Being on both Ethereum and BSC allows LINA holders to benefit from low gas fees when trading on LinearExchange which runs on BSC. But as we are on both ETH and BSC, all of our Liquid tokens can be bridged back to ETH to be used in the ETH ecosystem as well as the BSC ecosystem… We will be going on numerous other chains over the next few months.
Tom | Gate.io: Got it, thanks! You also previously mentioned the Linear DAO. What is that all about?
Kevin | Linear: Ever since we started working on Linear we knew we wanted the protocol to adopt a DAO structure. Now after months of hard work we are proud to say that the Linear DAO is now live. LINA holders can now propose and vote on both improvement implementations and new listings they want to see become a part of Linear Finance. If you want to know more about the Linear DAO be sure to check out the link below:
Tom | Gate.io: Great, yes DAOs are a hot topic nowadays so the approach is definitely appreciated. Ok Kevin, now I will open the group up for questions from the community
Kevin | Linear: sure thing. looking forward to it
Free-Ask from Gate.io Community
Q: 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 | Linear: As the Linear DAO just launched, users can propose and vote on a number of different protocol features such as the listing of assets, and changes to protocol features. Our ultimate long-term goal is that Linear becomes managed by its users and that we help with the implementation of the user’s wishes. So we expect the user involvement to increase, to become more influential as time goes on.
Q: Since a lower collateralization ratio makes the Linear Exchange more efficient (as long as stability is ensured), can we possibly see Linear moving to a system with a more dynamic P-ratio that’s determined by crypto market factors such as the Crypto Volatility Index?
Kevin | Linear: I believe many users have asked this before and the changes in the P-ratio, particularly if tied into a volatility factor is one that we can explore… It will likely need substantial backtesting in order to see how it affects the number of liquidations. Currently, users have a sense of when they will or will not be liquidated… Having a floating P-Ratio may bring a substantial amount of uncertainty from a user perspective
Q: When CHAOS?
Kevin | Linear: Thanks for this question. We are in the process of final testing on Chaotic and are preparing for launch. I would expect that Chaotic will be out over the next few weeks. More details will follow. Once Chaotic is out, we will begin the rollout of our Moonbeam implementation, Athos.
Q: Many blockchain platforms are trying to form DAO. DAO should be based on the formation of a solid community. Linear Finance recently announced the launch of Linear DAO, but is there a solid community formed to form DAO?
Kevin | Linear: Over the last year, we have built quite a loyal following of Linear users that have been staking LINA and building debt. Many are quite loyal users of the exchange and our Linear vaults which generate yield. They all have their own thoughts and how they envision the protocol to evolve and they are the ones that have been contributing to thoughts and ideas in the DAO
Q: Linear Finance is originally built on top of the Ethereum network. What is the main reason for Linear to switch to BSC network?. Are there other network chains you support other than Binance Smart Chain that we, the users, can switch to and use to transfer our assets?.
Kevin | Linear: This is actually a great question and leads us to answer where we think Linear is heading in the future. When we initially started Linear Finance, we were looking for a way for users to trade synthetic assets in a manner that was cost-efficient, easy, and fast. Our L1 options at the time were a bit limited as we wanted to find a home where the ecosystem was growing and that is why we chose Binance Smart Chain. We succeeded at doing this and were able to complete the BSC implementation and subsequently able to migrate users over. Now, as mentioned before, we have two more implementations, one for Kusama and one for Polkadot, and those will be up next and done through Moonbeam. But, where do we go afterward? I think over the next 1.5 years we will see increasing adoption of crypto by non-crypto natives as well as institutions. Everyone can tell in the news that BTC, ETH, and other top coins are starting to really creep into mainstream investors…..
So where does all of this money flow? Our theory is that it will move into CeFi, DeFi and if so, likely onto the Ethereum ecosystem. And why is that? Well, it’s because Ethereum offers the widest breadth of dApps, a vibrant ecosystem, and unparalleled security as well as a long track record of uptime as compared to other L1s. But damn, ETH TPS is low and gas fees are high… EIP-1559 and ETH 2.0 will make ETH transactions more efficient but certainly, doesn’t help with scaling…
So then we now have more sophisticated L2 solutions coming on board such as zk-rollups which offer scaling, quick finality, and low transaction costs
With this, ETH becomes a settlement layer with dApps conducting transactions in the L2 layer…
So in short, soon after our Moonbeam integrations, we will start exploring how to move Linear over to an L2 layer. Initial discussions are starting and proposals will be written into the DAO for consideration!
Tom | Gate.io: Ok Kevin, thank you very much for taking the time to answer the community’s questions
If the community wants to keep up to date with the project’s progress and upcoming news, how can they do so?
Kevin | Linear: Here are our social media links:
Telegram (Announcements): https://t.me/linearfinanceannoucements
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.