Linear Finance, the first cross-chain compatible, decentralized delta-one asset protocol, has announced its partnership and integration with Nervos.
According to the official announcement, Linear Finance will explore the cross-chain asset solutions of the Nervos CKB (Common Knowledge Base) blockchain. If the integration works well, these solutions can place Linear Finance as a leader among the synthetic asset platforms.
Interestingly, Nervos and Linear Finance share a very similar mission statement. Both projects are working hard towards building a more interconnected blockchain setup. Together, they believe that cross-chain compatibility will play a pivotal role in the continuing growth of the DeFi space. Since the beginning of August, the TVL of the DeFi ecosystem has shot up from $4 billion to a current $9.69 billion. However, the gas fee and network congestion issues of the Ethereum blockchain might limit the growth of DeFi.
Nerovs CKB – Bridging blockchains
According to Linear, several public blockchains are primed for success in the DeFi space. However, Linear Finance believes that Nervos is uniquely placed as it is one of the few blockchains that:
- Offers store of value
- Acts as a bridge between different blockchains
Apart from that, Nervos also combines the power of Bitcoin’s proof-of-work consensus with the smart contract functionality of Ethereum.
The focal point of integration
- Linear Finance will use Nervos for cross-chain swapping of Ethereum-based LINA tokens. The swapping will follow the interoperability standards of Nervos.
- Layer 1 of Nervos’ CKB will secure the LINA token trades.
- The Layer 2 aggregator solution of Nervos will enhance the transaction throughput and reduce the transaction fees by batch process trading orders.
Undoubtedly, Nervos has built up a very strong DeFi community in China. With the Nervos partnership, Linear will be able to create a strong market presence in one of the most active DeFi markets of the world. Therefore, both Nervos and Linear Finance will now work together to accelerate DeFi adoption in China.