Linear Finance
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Linear Finance

Linear Mainnet Builder v1.0 Walkthrough

As the launch of our Linear Mainnet Buildr v1.0 is now live, we wanted to provide everyone with a revised guide on how to use our Buildr dApp so that you can build/burn LUSD, and earn LINA staking rewards. A number of you participated in our testnet Buildr and we want to thank everyone who provided invaluable feedback, this allowed us to further improve our product.

What is Buildr?

Buildr dApp: https://buildr.linear.finance/

Buildr is part of Linear’s decentralised application suite. Users can stake LINA tokens to build ℓUSD, the base currency of Linear Exchange. Stakers are entitled to staking rewards and a split of the transaction fees generated by Linear Exchange. Users can use built ℓUSD to purchase synthetic assets on the Linear Exchange to gain different investment exposures. ℓUSD can also be moved to other protocols or dApps within the DeFi ecosystem. As such, Buildr will involve three separate functions in this case, Build, Burn, and Claim which we will explain below:

Using Buildr

Upon loading the site, you land at our Buildr dApp. Please click on the “Ethereum Network” box with the Metamask logo to enter our Buildr.

You will then be brought to our Buildr welcome screen, clicking on the “Buy LINA” box will bring you to Uniswap to purchase LINA. Clicking on “Build ℓUSD” will take you to the main Buildr screen.

Below is our main Buildr screen. Important things to note on this page are, the “Build” component of the page consists of input boxes which you will use to build ℓUSD. On the right hand side, the wallet balance will show the amount of LINA that you have available, staked, and locked in your wallet. It also shows you how much ℓUSD you have available, the total value of the Liquids you have built, and your respective share of the debt pool in ℓUSD.

What is the P-Ratio:

You will notice that there is a section of Buildr that mentions a Pledge Ratio or “P Ratio”. The Pledge Ratio is considered our collateralization ratio and all LINA stakers are subject to this ratio in regards to building ℓUSD and managing their debt. Currently, our P-Ratio is set at 500% and is calculated by the following:

At Linear, users will use this P-Ratio to determine the amount of ℓUSD they are eligible to “Build” (i.e. borrow), based on the current market value of LINA. For instance, with a P-Ratio of 500%, and a user has total staked and/or locked LINA worth $100 USD, they will be able to build $20 ℓUSD.

How to build ℓUSD:

Under the Build section of Buildr, users can build ℓUSD using any of the options below.

  1. Input the amount of LINA you want to stake, Buildr will automatically calculate the amount of ℓUSD with a P-Ratio set to 500%.
  2. Input the amount of ℓUSD you want to build, Buildr will automatically calculate the amount of LINA needed with a P-Ratio set to 500%.
  3. Click “Max” under the “Build ℓUSD”, to build the maximum amount of ℓUSD allowed with the number of LINA in your wallet. The P-ratio will be set to 500%.

Note, at this point, the protocol will only allow you to build ℓUSD at a 500% P-Ratio. For instructions on how to increase your P-Ratio beyond 500%, please read further down in this article on “Staking additional LINA to increase P-Ratio”

As can be seen from the screenshot below, the user is seeking to build 200 ℓUSD and staking 84,960.47 LINA at a P-Ratio of 500%. To proceed to the next step, the user will click on “Build Now”

You are now brought to a screen where you will need to complete two Metamask transactions to complete the ℓUSD build process. If it is your first time staking and building ℓUSD, there will be an extra Metamask transaction in which you will be asked for permission to interact with the Buildr contract.

Once your three Metamask transactions are completed, you have successfully built ℓUSD and this will be updated in the ℓUSD balance on the right-hand side

How to increase your P-Ratio:

In some instances, users may find the need to increase their P-Ratio in order to reach the target P-Ratio of 500% or simply want to have some buffer. Note, in the screenshot below, the user’s pledge ratio has fallen below 500%. Thus, in order to fix this, the user decides to increase his/her P-Ratio to 600% by staking additional LINA. The user simply inputs 600% in the P-Ratio input box, the Buildr dApp will calculate the amount of LINA needed in order to reach a 600% P-Ratio. The user then clicks “Build Now” to proceed.

At the next screen, the user will need to complete one Metamask transaction to stake the additional LINA. Once completed, the additional LINA will be staked and the revised P-Ratio will also be reflected.

How to burn ℓUSD and unstake:

To unstake your LINA or if you need to increase your P-Ratio, you can burn your ℓUSD. Click on the “Burn” tab on the top bar of the Buildr dApp. You will then be brought to the Burn screen.

Under the Burn section of Buildr, users can burn ℓUSD or unstake LINA using any of the options below.

  1. Input the amount of ℓUSD you want to burn, Buildr will show the resulting P-Ratio after the ℓUSD is burnt. Buildr will automatically calculate the amount of LINA to be unstaked when the P-Ratio is at 500%.
  2. Input the amount of LINA you want to unstake, then Buildr will automatically calculate the amount of ℓUSD needed to maintain a P-Ratio of 500%.
  3. Click “Max” under the “Unstake LINA” or “Burn”, to burn and unstake the maximum allowed.
  4. Set a P-Ratio higher than 500% and Buildr will unstake the required LINA to reach your desired P-Ratio.

How to claim your ℓUSD and LINA Rewards:

To claim your LINA staking rewards, click on the “Claim” tab on the top bar of the Buildr dApp. You will then be brought to the Claim screen.

  1. After clicking the “Claim” tab, users can claim LINA and ℓUSD.
  2. Users will receive LINA and ℓUSD rewards by creating debt via Linear.Buildr. The rewards are calculated based on the percentage of debt in the pool and distributed accordingly. The rewards from ℓUSD are generated as a % of the trading fees generated from the Linear.Exchange.
  3. The claim rewards will be distributed roughly 24 hours after the close of the weekly rewards period.
  4. Users have a 14 day claim window for each weekly period reward distribution. If rewards are unclaimed during this period, the rewards are forfeited and put into the subsequent week’s rewards pool.
  5. User will be able to claim their rewards upon fulfilling the following requirements:
  6. P-Ratio reaches or exceeds the target ratio of 500%.
  7. Claim period is open.
  8. The reward LINA will be locked for one year from claiming the rewards
  9. While the reward ℓUSD are unlocked, it can be used as raising the P-Ratio, or paying the transaction fee in Linear.Exchange.

If you have further questions on the process of Build, Burn, and/or Claim. Please feel free to ask us in our Telegram and Discord channels.

-Linear Team

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Linear Finance

Linear Finance

A Decentralized Delta-One Asset Protocol with Unlimited Liquidity