Feb 7, 2022 · 2 min read · cat
Dear Linear Community,
Many of you are familiar with our native token LINA but did you know our stablecoin ℓUSD has many use cases too? Let us round up the utility functions of ℓUSD on the Linear platform and in the DeFi space to help you understand it better!
Our stablecoin ℓUSD is most often used to purchase and trade Liquids on Linear.Exchange. In short, Liquids are tokenized derivatives that offer traders one-to-one exposure to real-world assets, without needing to purchase the actual underlying asset. At Linear.Exchange, investors have access to various offerings ranging from cryptocurrencies, commodities, and indices. Both spot and perpetual trading with Liquids are available. Trades have virtually no slippage and come with a low 0.25% fee. Although all the synthetic assets are added by the Linear team at the moment, it will be possible in the future to add new liquids via Listing Proposals now that the LinearDAO is live.
To trade Liquids, users need to get their hands on the stablecoin ℓUSD by minting it on Linear.Buildr or purchase it directly on exchanges such as PancakeSwap, OCP, and AscendEX. Here are some quick guides to show you how to acquire ℓUSD in a few simple steps by buying it on exchanges or staking $LINA to mint it.
You will also be glad to learn that traders can become a liquidity provider of our stablecoin ℓUSD to reap passive returns. Liquidity providers are entitled to enjoy a portion of the trading fees from the trades that occur in that pool. Linear recently introduced a new liquidity pool, namely the BUSD/ℓUSD pool, in partnership with Omni Consumer Protocols Price (OCP). In this case, 100% of trading fees go to LP providers. Learn how you can provide liquidity by adding a single asset and staking the LP token to farm yield here!
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.