Projects in the Linea Ecosystem
Over 100 projects are slated to launch on Linea, an EVM equivalent, developer-ready ZK rollup, including Aave, PancakeSwap, Beefy, and Sushiswap. We look at a range of applications that will be launching on Linea across DeFi, NFTs, and other utility applications like cybersecurity.
Key Takeaways
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Based on information from the project, the ecosystem for Linea will include over 100 projects.
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Linea is branded as an EVM equivalent, developer-ready ZK rollup with a focus on enabling the building of scalable Ethereum dApps.
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The Linea network will support a wide range of applications, including DeFi, NFTs, and other utility applications.
Consensys announced that its EVM equivalent Layer 2 zkEVM – Linea – has opened up for the mainnet alpha on July 11, 2023. Linea leverages zero-knowledge proofs to provide evidence of transactions that take place on its platform, before bundling these up and batching them for validation on the main network using rollups. The whole process takes place using Linea’s Canonical Message Service.
Linea offers users improved efficiency and lower transaction costs while maintaining the same level of security and decentralization as the Ethereum mainnet. As Linea is EVM equivalent, developers can easily port their applications from the mainnet and deploy their contracts without requiring any changes.
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In this article, we’ll look at some projects that are already on Linea or are close to deploying on the network.
Do note that coverage in this article is not an endorsement of any project and that all information provided is for educational purposes only.
Decentralized Finance (DeFi)
Applications like decentralized loan facilities, and decentralized exchanges will be one of the biggest beneficiaries of a cost-efficient network. Networks like this will give users an avenue to enjoy self-custody applications that let them manage their wealth. For developers, they also get to enjoy a network that lets their application operate at its best. With Linea network’s promises of enhanced efficiency, decentralized application developers are already deploying their solutions to the network. The DeFi space currently dominates the Linea mainnet alpha. Some of the DeFi applications on the network include:
iZUMi Finance
iZUMi Finance is a multi-chain liquidity as a service (LaaS) platform, Based on DefiLlama data, iZUMi Finance has a TVL of over $19 million as of the time of writing. It is already live on the Linea testnet, and will likely launch on the Linea network as well. Here’s a quick look at iZUMi Finance’s offerings:
iZUMi’s LiquidBox program assists projects in attracting liquidity by planning an efficient incentivized liquidity provision scheme. It also offers a Shared Liquidity Box to map the liquidity of one token to the multi-chain, where LPs can use one liquidity on the original chain to farm on multi-chains.
iZUMi Finance also launched iZiswap on the BNB Chain, a discretized-liquidity AMM upgraded from Uniswap V3’s concentrated liquidity model. iZUMi is also developing the iUSD, a US dollar-pegged stablecoin backed by USDC. iUSD is used in the iZUMi bond farming program.
Other user-centric decentralized finance products by iZUMi include the impermanent loss insurance program that offers liquidity providers a refund on the impermanent losses incurred on their LP tokens. It also offers a fixed-income opportunity with up to 10% APR with a tenure of 30 days.
iZUMi is managed by the iZUMi DAO which votes on improvement proposals using veIZI tokens, which are locked iZi tokens. Read this article to learn more about veTokens.
Cashmere Labs
Cashmere Labs enables cross-chain swaps with MEV protection, built on LayerZero. This means users can transfer assets between chains without using bridges or CEXs, while offering protection against front-run and sandwich attacks to offer users an optimal trading experience.
First, information on destination assets can only be known by Cashmere validators, as it is sent with zk-like proof, preventing ordinary MEV front-running bots to see it on-chain. Users can also hide their transactions by using private RPC flashbots.
Cashmere is currently in its testnet phase but plans to launch on multiple networks, including Linea and other Layer 2 networks.
Cashmere is also run by the Cashmere DAO. Cashmere token (CSM) holders lock up their tokens to receive veCSM which is used to vote on the project improvement proposals and also qualifies holders for certain benefits. Cashmere claims to distribute 100% of the revenue it generates from its applications to the veCSM holders and the DAO, which also manages the project’s treasury.
ZKEX
ZKEX is developing an omnichain order book decentralized exchange. With this, it claims to give users a feel of the experience on centralized exchanges while enjoying self-custody trading on decentralized networks. ZKEX is deploying on zkEVM Layer 2 scaling solutions. The testnet phase is currently running on zkSync Era and Linea testnets, and is likely to eventually launch on the Linea mainnet.
As it uses the order book method instead of Automated Market Makers (AMM), users can buy at the market price, set limit order triggers and stop-loss orders to automate trading, while transactions are verified using zero-knowledge proofs that help to prevent sandwich attacks from arbitrage bots.
In addition to its orderbook decentralized exchange service, ZKEX will also offer derivatives trading as it attempts to develop a full-suite exchange on the networks where it deploys. It doesn’t charge any fees for trades on Layer 2 networks. In the future, ZKEX will also enable users to collateralize their stablecoins and stablecoin-LP tokens to borrow a new stablecoin for additional trading opportunities on ZKEX.
Gridex Protocol
Gridex claims to be the first infinitely scalable fully on-chain order book DEX for the EVM ecosystem. It claims to offer zero slippage and no negative fee order book trading platform on EVM networks. Gridex presents a trading interface that looks very much like that seen on centralized exchanges while handling the core functionalities of the platform through smart contracts. It uses oracles to provide price and liquidity data for its protocol. Gridex is already available on the Ethereum, Arbitrum, Polygon, and Optimism networks. It is currently running a testnet program on the Linea testnet and will likely eventually deploy the application on the Linea mainnet.
Users can use the swap feature on the platform to perform direct asset swaps or trade in the centralized exchange style. Gridex also presents a Grid trading option, where users can place multiple buy and sell orders at fixed intervals or price levels to profit from market volatility. According to the project, these features are controlled by a set of persistent, non-upgradable smart contracts.
Mendi Finance
Mendi Finance is an EVM-compatible lending and borrowing protocol that will launch on the Linea network. Mendi Finance is in the testnet phase at the time of writing and it currently runs on the Linea testnet.
Mendi offers peer-to-peer lending in a fully decentralized, transparent, and non-custodial way, and it aims to be the prime lending platform on Linea by offering competitive incentives for money markets, having the deepest liquidity, and being native to Linea.
At launch, users can lend any supported assets on Mendi, and use their capital as collateral to borrow these supported assets, which will include ETH, BTC, USDC, USDT, and DAI. These assets have collateral factors that can range between 0-90%, which represent the maximum you can borrow against a specific asset. In the event an account’s borrow balance exceeds the limit of collateral factors, it will be eligible for liquidation.
MENDI will be Mendi Finance’s native token, the project hopes to use the token in different ways, such as a staking program that could be one of the benefits of holding the token.
NFT Projects
NFT projects on the network are developing facilities that promote NFT-related activities on the Linea network. Some of these include:
NFTs2Me
To simplify the process of creation, deployment, and management for NFT creators on the Linea network, NFTs2Me claims to offer utilities to enable users to create and manage NFTs without writing a single line of code. NFTs2Me claims that this facility is open to anyone and is free to use. Tools on the platform include a design panel that allows creators to define the attributes of their NFTs. It features an AI-powered art and image generation tool that enables users to generate artwork on the platform, define its metadata, and set a minting price. It supports multiple NFT smart contract standards and allows collectors to pay for minting in any (crypto) denomination. Creators will however receive the payout in USDC.
NFT creators can use the platform tools in many ways to manage the generated art. NFTs2Me’s user dashboard features analytics tools to help users track the performance of their NFTs. Users can also plan and execute airdrops, take snapshots, design an NFT-gating program, and prepare whitelists for their NFT minting events from their NFTs2Me profile.
NFTs2Me is multichain and is available on Ethereum, Polygon, Taraxa chain, and Layer 2 networks Arbitrum, Optimism, zkSync Era, and now Linea network.
ghostNFT
ghostNFT was one of the official testnet projects for the Linea network, and with the launch of the mainnet alpha, it is expected to be available for use on the main network.
ghostNFT claims to leverage the ERC-721Envious standard (an improved version of the ERC-721 standard) to deliver extra monetization functionality to NFT through NFT collateralization. It claims to empower NFT creators and collectors in a number of ways by fusing NFT and decentralized finance through its NFT 2.0 project. It allows creators to define a collateralization plan for their NFT, collect collateral, and also carry out fundraisers for their NFT launch. Users can do this for a single NFT or a whole collection through the ‘disperse’ function.
ghostNFT is multichain and is already available to users on Ethereum, BNB Smart Chain, Avalanche, and several other networks.
Other Utility Applications
Apart from DeFi and NFT applications, Linea also promises to be a fertile ground for other kinds of applications like cybersecurity projects. We’ll end off with a look at one of the utility applications on Linea:
HAPI
The crypto space, like the whole internet, suffers from security breaches. Exploitations on decentralized protocols have led to the loss of significant amounts of assets with values ranging from a few thousand dollars to hundreds of millions.
To prevent hackers and exploiters from committing fraud, HAPI is launching a suite of cybersecurity strategies it claims to help to keep the crypto space safer. HAPI incorporates an on-chain database approach and distributed KYT/AML solution to safeguard users from common cybersecurity-related threats. HAPI has already integrated its solution into Optimism, Arbitrum, Ethereum, BNB Chain, Polygon, and a handful of other networks.
From a user perspective, users on Linea can track their transactions via HAPILAB’s terminal.
Note that this list is non-exhaustive and the Linea ecosystem is likely to get even bigger and applications’ prominence could change during this time. There are also established DeFi players that are likely to launch on Linea, including Aave, PancakeSwap, and Sushiswap.
Final Thoughts
If Linea lives up to its promises, launching applications on the platform is a no-brainer for developers, and users will also be willing to adopt these applications. However, with the platform in its earliest stage, Consensys, independent developers contributing to the core platform, and projects teams deploying on the network will take on the role of creating a user-friendly environment for users.
We have discussed some of these applications and basically given a hint of what they could offer to the ecosystem and users. These applications will attempt to get the best out of the Linea network. On the users’ end, it is important to understand the current stage of development of the whole network and even more the individual applications. Keep in mind that these applications might need time to stabilize.
That being said, mentions in this article don’t constitute an endorsement or recommendation of any sort. Always do your own research before using any decentralized application. This article is only for educational purposes and not financial advice.
Joel is deeply interested in the technologies behind cryptocurrencies and blockchain networks. In his over 7 years of involvement in the space, he helps startups build a stronger internet presence through written content. Follow the author on Twitter @agboifesinachi
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