Linear (LINA)

Synthetic Asset Creation

Linear allows users to create synthetic assets called "Liquids" that represent traditional financial products like commodities, forex, cryptocurrencies, and market indices. These synthetic assets provide exposure to real-world assets without needing to own them directly.

Trading and Liquidity

Liquids can be traded instantly on the Linear Exchange with unlimited liquidity and zero slippage. The platform uses smart contracts and a debt pool instead of traditional order books, enabling fast and cost-effective trading.

Collateral and Stablecoin

The LINA token is used as collateral to mint synthetic assets and the stablecoin ℓUSD, which is pegged to the US dollar. Users can stake LINA or a mix of LINA and other cryptocurrencies to mint ℓUSD.

Governance and Staking

LINA holders participate in governance by voting on proposals that shape the protocol’s development. They can also stake tokens to earn rewards and support the platform’s liquidity and stability.

Cross-Chain Compatibility

Linear supports cross-chain functionality, allowing users to interact with assets and DeFi ecosystems across multiple blockchains, enhancing accessibility and flexibility.

Ecosystem Products

Linear operates through several apps like Linear Buildr (for managing collateral and minting Liquids), Linear Exchange (for trading Liquids), Linear Vault (for staking and yield farming), and Linear Swap (for cross-chain token swaps).

Pros of Linear

• Enables creation of synthetic assets called "Liquids" that represent commodities, forex, cryptocurrencies, and market indices, giving users broad exposure without owning the actual assets.
• Uses smart contracts on Ethereum for trustless, decentralized trading with nearly instant confirmation and zero slippage.
• Supports cross-chain compatibility, allowing access to assets across different blockchains.
• LINA token serves as collateral, governance tool, and rewards users through staking and liquidity provision.
• Offers a user-friendly ecosystem with apps like Linear Buildr, Linear Exchange, Linear Vault, and Linear Swap for managing assets and trades.
• Decentralized governance via Linear DAO lets token holders vote on protocol development.
• Listed on multiple centralized and decentralized exchanges, making it accessible for trading.

Cons of Linear

• The platform experienced a notable DeFi exploit that collapsed its stablecoin (LUSD), showing vulnerabilities in smart contract security.
• Price volatility: LINA token has shown significant price fluctuations, sometimes underperforming the broader crypto market.
• Relies on Ethereum network, which can have high gas fees and network congestion, although upgrades are ongoing.
• Synthetic assets depend on collateralization ratios, which may require users to lock up significant amounts of tokens.
• Smaller market cap and trading volume compared to major cryptocurrencies, which can affect liquidity and price stability.

These points summarize the main advantages and challenges of using Linear in the crypto space.

Founders of Linear

Linear was co-founded by Drey Ng and Kevin Tai.

• Drey Ng is also the co-founder and chief product officer of Liquefy, a platform for tokenized securities.
• Kevin Tai was formerly the vice president at Credit Suisse in Hong Kong, with experience in global wealth management and investment banking.

They lead a small team focused on building the Linear protocol for synthetic asset creation and trading.

Seed Investors

Linear secured about $1.8 million in seed funding from notable investors including Alameda Research, NGC Ventures, and Hashed.

Venture Capital and Crypto Funds

Other investors include crypto venture capital firms and exchanges such as Huobi, CMS, and Moonrock Capital.

Founders and Team

Linear was founded by Kevin Tai and Drey Ng, who brought experience from traditional finance and fintech sectors.

Institutional Support

Hex Trust was added as a custody partner to provide institutional-grade custodial services, supporting investment from institutional players.

These investors helped launch and grow Linear’s decentralized synthetic asset platform.

Halal Status of Linear

• Yes, Linear is considered halal by some Islamic finance screening sources because it is a decentralized protocol focused on synthetic assets and does not inherently involve interest (riba) or prohibited activities.
• However, the halal status of any crypto token, including Linear, depends on detailed Shariah compliance checks of the project’s structure and use cases.
• It is recommended to consult specific Shariah advisory reports or scholars for the most accurate and personalized ruling.

For more detailed Shariah analysis, you can visit specialized Islamic finance crypto screening sites like Sharlife or Islamic Finance Guru.