Interesting developments and strategic partnerships keep the DeFi boom going. Whether it is achieving progress with vertical or horizontal growth, important partnerships, expansion in hitherto unexplored regions has been the hallmark of companies invested heavily in DeFi.
Linear Finance, a much-known DeFi protocol has been attracting investments recently. A group of some big strategic investors including quantitative trading firm Alameda Research have led investment in the decentralized finance (DeFi) protocol. Linear Finance announced the completion of its $1.8 million dollars private seed finding today. It has emphasized that NGC Ventures, Hashed, CMS Holdings, Genesis Block, and Kenetic Capital had also led the round. Evernew Capital, Soul Capital, Moonrock Capital, Black Edge Capital, and PANONY had also participated as strategic partners in this deal.
The NGC founding partner Tony Gu as well as Hashed Co-founder Ryan Kim apart from investments will also be a part of the advisory board for Linear Finance. This is surely a strategic move that will help Linear Finance focus on progressing the path of the protocol to greater heights. The new private seed funding amount has been kept aside to fund towards increasing the growth and development of Linear Finance’s testnet and mainnet. It will also be utilized to promote the platform further as implied in one of the Press releases.
Linear Finance now claims to be the first cross-chain compatible decentralized delta-one asset protocol which can create, trade as well as manage synthetic assets. Synthetic are tokenized forms of physical assets, and on the other hand, synthetic asset tokens are derivates that can be traded with leverage. Synthetic and Universal Market Access (UMA) are popular synthetic asset protocols in the DeFi markets today. Linear Finance, built on Ethereum, will also endow cross-chain compatibility.
It will be interoperable. They will also be integrating with Binance Smart Chain to begin with and also with two other blockchains very close. The names of the two other blockchain partners are still not announced and will be made official when the talks come through. With the interoperability function, Linear Finance will be able to access the huge base of Binance customers. Linear Finance also is going to be cheaper, faster owing to low gas fees and speedy oracle price feeds.
With the Binance smart Chain integrated, oracle updates will be reduced to 10 seconds from the present 3 to 10 minute range. Gas fees also could be 10% of what Ethereum is presently charging. Binance Smart chain was luanhced last week but is yet to be onboarded to a good number of Dapps yet. Linear Finance’s officials chose Binance because they believe it will be the right Ethereum Killer. As of now it is not clear whether Binance also has invested in Linear Finance. There was no forthcoming comment about Binance’s stake in the investment.
As part of strategic funding round, NGC Ventures’ Tony Gu and Hashed’s Ryan Kim have also joined Linear Finance’s advisory board. Gu said,
“Synthetic asset creation is a key part of the DeFi ecosystem, and we believe Linear will emerge as a leader in this space.”