As Nervos researcher and architect Jan shared in our recent Town Hall, decentralized finance is one of the main areas our team is focusing on as we enter Q4 and 2021.
That’s why we’re pleased to announce our new integration with Linear Finance, the first cross-chain compatible, decentralized delta-one asset protocol to create, trade, and manage synthetic assets. Together, we’re looking forward to exploring the ways cross-chain asset solutions on Nervos CKB can lead to a more interconnected blockchain ecosystem.
Why Nervos is collaborating with Linear Finance
Cross-chain transactions have become increasingly popular in the crypto space, especially in the DeFi sector. Every day, there are more and more cross-chain asset solutions like Wrapped Bitcoin (WBTC), which enables users to transfer Bitcoin to Ethereum and other chains. At the same time, there are numerous projects trying to find a blockchain that provides low latency and affordable gas fees for their users to run smart contracts while also enabling them to build with the “money legos” available in the DeFi ecosystem and interact with users on Ethereum.
As Jan said during the Town Hall, we believe there will be several public blockchains that launch different kinds of assets in the future. However, there will only be a few chains that can store the value of assets and act as the bridge for connecting all assets from different chains — and Nervos CKB could be one of those chains. In many ways, Linear Finance shares our vision for a more interconnected blockchain ecosystem, which is why we decided to explore an integration.
About Linear Finance
Linear Finance is a cross-chain compatible DeFi protocol with unlimited liquidity that enables the creation of synthetic assets (Liquids) with zero slippage. Their core solution is a collateralized debt pool, which is backed up by their native token Lina and other crypto valuable assets. Users can use Linear USD to purchase synthetic assets through their exchange with low transaction fees and high liquidity.
The integration between Nervos and Linear Finance
Nervos is exploring integrating with Linear Finance in a few different ways:
- Cross-chain swapping Ethereum-based LINA tokens/synthetic assets according to the Nervos standard.
- Utilizing Nervos’ Layer 2 aggregator solution to package and batch process trading orders, as well as building out Linear functions to improve transaction throughput and reduce transaction fees while not affecting the safety of the trades, which is secured by Layer 1 in Nervos CKB.
Improving the Nervos ecosystem with Linear Finance
Our collaboration with Linear Finance will continue to diversify the Nervos DeFi ecosystem. The more assets from other chains transferred through Linear Finance, the more DeFi services and “money legos” can be used on Nervos CKB. Nervos could even enable applications to bridge assets from other chains at a low cost and users won’t even be aware of it.
Toward the end of the Town Hall, Jan talked about the potential of Interoperability 2.0, which is our vision for a more connected blockchain ecosystem that also offers an easy-to-navigate user experience. We believe our collaboration with Linear Finance can move us one step closer to that goal.
We look forward to releasing more documentation and updates as we move further along in the integration.
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Nervos integrates with Linear Finance to propel DeFi development was originally published in Nervos Network on Medium, where people are continuing the conversation by highlighting and responding to this story.