Welcome to Linear 2.0

Linear Finance
4 min readMar 22, 2024

What is Linear 2.0?
Linear 2.0 is the evolution of Linear Finance! Under the umbrella of 2.0 there are protocols enhancements, a new website and branding and ultimately a suite of new dApps. The launch is just the beginning,
today we launch with our new website and Multi-Collateral, and we are sharing with you our aggressive roadmap for the remainder of 2024.

The Multi-Collateral Upgrade
The multi-collateral upgrade in Linear introduces several significant changes to user interaction with Linear products. Lets dive into the detail.

Staking and ℓUSD Creation: This upgrade allows users to stake three new popular assets, including wrapped versions of BNB, Ethereum and Bitcoin, to generate ℓUSD. In the future each asset may have a unique P-ratio based on its volatility; assets with lower volatility will require a lower P-ratio, enabling more ℓUSD creation per unit of collateral. For launch all assets have been set at the current rate of 350.

Impact on Platform TVL and ℓUSD Stability: This diversification in collateral options is expected to enhance the Total Value Locked (TVL) on the platform, increase ℓUSD circulation, and contribute to its price stability.

Ease of Entry and Trading: By lowering the barrier to entry, the upgrade intends to simplify the process of creating debt and trading synthetic assets, increasing transaction volume and associated fees generated from the Linear Exchange, which benefits both the economic health of the protocol, and the users who share in the fees via staking.

Weekly Rewards Allocation: Rewards will still be distributed weekly based on the relative amount of debt built with all collaterals. However, specific collaterals may receive temporary percentage bonuses on weekly rewards. For instance, a collateral receiving a 100% bonus would yield double the rewards compared to others. For launch we are applying double the rewards to users who continue to use our native token, LINA, as their source of collateral.

Linear Exchange Transaction Fees: These fees will be exclusively distributed to users who have created debt using $LINA as collateral. Debts created with other collateral types won’t be eligible for these transaction fees.

P-ratio Maintenance for Rewards: To claim rewards linked to a specific collateral, users must maintain the P-ratio of that collateral above the target. If a user has multiple collaterals but only one meets the required P-ratio, they can only claim rewards for the qualifying collateral.

Strategy Behind Rewards and Fees: Applying variable bonuses for weekly rewards allows the protocol flexibility to incentivize specific collaterals. However, Linear Exchange transaction fees remain dedicated to encouraging the use of LINA for debt creation, supporting the distribution and trading volumes of our native token.

Liquidation Process: Each type of collateral will be treated separately for liquidation purposes. If a user’s P-ratio for one collateral falls below the threshold, only that collateral will be subject to liquidation without affecting others. Collaterals with higher liquidity and lower price volatility are expected to have lower liquidation penalties, however for launch all liquidation thresholds have been set to 200.

This restructuring aims to offer more flexibility and incentives for using various collaterals, while also maintaining a focus on LINA’s role within the platform. We will be sharing a full user guide via our social platforms very soon.

Linear 2.0 Roadmap
We fully intend to maintain our momentum as we push hard through the remainder of 2024 and beyond.

April 2024: We are upgrading our Cross-Chain Bridge to utilise ChainLink’s CCIP technology, which promises improved speed and security. Look out for ChainLink’s and Linear’s partnership announcements coming soon! The first of our AI based integrations starts with a simple chatbot, this Linear 2.0 trained, LLM based bot, will be able to support users with all their questions from how to build ℓUSD to where to buy LINA.

May 2024: The settlement time for trades on our synthetic exchange has been a bug bear for our users for too long, we are looking forward to getting this as close to instant as technically possible in the near future. The second installment of AI technology will be our own Market Sentiment Indicator, a super tool for traders looking get ahead in the markets.

June 2024: This month we will be pushing our synthetic listings to new highs, with essential input and support from our community. If there’s an asset you want to trade get ready to put your case forward.

Q3 — Q4: Development and launch of our new Marketplace and Peer-to-Peer trading platform. We’re not releasing the full details today, other than letting you know we are focusing on the up and coming market of trading vesting (locked) token allocations, in synergy with our friends at Meentle…

The team at Linear would like to thank all of our community members, old and new, for their patience and support. There’s a busy year coming, we hope you’re ready!?

Team Linear



Linear Finance

A Decentralized Delta-One Asset Protocol with Unlimited Liquidity