The Good Tech Companies - Educational Byte: What is the Price-Protected Token LINE?

Episode Date: July 13, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/educational-byte-what-is-the-price-protected-token-line. LINE is a price-protected digital asset, designed to safeguard your investment through a unique borrowing system deployed on Kava. Let's learn about it! Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #obyte, #line-token, #token-price, #staking-rewards, #token-rewards, #kava-cryptocurrency, #kava-rise-program, #good-company, and more. This story was written by: @obyte. Learn more about this writer by checking @obyte's about page, and for more stories, please visit hackernoon.com. LINE is a token deployed on the Kava network and connected to Obyte. It operates as a price-protected digital asset, designed to safeguard your investment. Users can acquire LINE tokens by locking up an equivalent value of GBYTE (Obyte native currency) collateral through linetoken.org.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Educational Byte What is the price-protected token line, by Obite? In a market as volatile as crypto, features such as stability and price protection of some sort could be very welcome for all users. They're not always available, though, let alone if you're looking to earn some rewards. Luckily, the token line deployed on the Kava network and connected to Obite is offering this opportunity to everyone. Line operates as a price-protected digital asset, designed to safeguard your investment through a unique borrowing system deployed on Kava. Users can acquire Line tokens by

locking up an equivalent value of GBYTE, Obite native currency, collateral through line token.org. Then, if the price of line tokens rises, users can profitably sell them on the same platform and settle their loans. Conversely, if the price decreases, users can repay the loan with their line tokens and retrieve their GBYTE collateral, minus fees, ensuring that their principal investment remains almost intact. The price of line tokens is determined by market dynamics, and to stabilize it, mechanisms such as interest rate adjustments and origination fees are employed. Additionally, it's important to note that line token loans have their own market as put options. They're financial contracts that give the holder the right,

but not the obligation, to sell a certain number of tokens at a predetermined price, known as the strike price, within a specified period. In this case, if you borrow line tokens with collateral, you get as well your put option in the form of a non-fungible token, NFT, that can be freely traded. On the other hand, if you buy line tokens directly, without collateral, or sell your NFT loan to make a profit, you'll lose the feature of price protection. Kava Rise program. Line was designed to work in tandem with the Counterstake Bridge and Obite and The Kava Rise program to offer rewards to its users. The Kava Rise program serves as an initiative by Kava to incentivize decentralized applications, DApps, operating on its network by rewarding

their developers based on their total value locked, TVL, a measure of the total funds held within a DeFi protocol. Participating DApps, including CounterStake and Line, are eligible to receive a portion of the monthly rewards, amounting to 1 million Kava tokens, around $1 million, distributed in proportion to the TVL they generate on Kava. This setup creates an incentive structure where dApps are prized for attracting entertaining users, fostering growth within the Kava ecosystem. Obite is distributing 90% of the rewards acquired from the Kava Rise program top R-dissipating users, 50% since June. Anyone can leverage the LINE token by borrowing it against GBYTE

collateral and bridging it to the Obite network through Counterstake. Holding line tokens in Obite wallets automatically qualifies users for a share of the KavaRise rewards, proportional to twice their line balances. This mechanism not only encourages participation but also provides a means for users to earn rewards while minimizing risk, as the price-protected nature of the LINE token ensures that users can manage potential price fluctuations effectively. Currently, the annual percentage yield, APY, of this method IS around 60%, see kava.obite.org for the actual rate. How to use LINE to earn rewards, besides trading with the tokens and the NFT loans, in the market section on the official webpage, you can take advantage of the Kava Rise

program or offer liquidity to its pools on Equilibratex. In the first case, you'll need to use the Counterstake bridge to move the assets across Kava and Obite. You can follow some simple steps bridge your GBYTEs from Obite to Kava using Counterstake. Utilize your GBYTE on Kava to borrow line tokens from LineToken.org. Bridge the borrowed line tokens back to your Obite wallet using Counterstake. Hold your line tokens in your Obite wallet to automatically qualify for a share of the Kava Rise rewards, distributed monthly based on your line token holdings. You'll receive your rewards directly to your Obite wallet without any additional steps required. To reclaim your collateral, bridge your line tokens back to Kava, repay the loan on

line token.org, and bridge the received GBYTEs back to Obite. Alternatively, if the line token price has increased since you opened the loan, you can sell your line tokens on the market for a potentially higher return. Backslash dot. In the second case, by providing liquidity to select pools trading line tokens, you can earn rewards in line tokens. Simply stake your LP, liquidity provider, tokens on the staking page to start earning rewards. Additionally, you have the option to stake your LINE tokens directly to receive a share of rewards. These rewards are sourced from fees collected from borrower SAND or distributed to participants based on their contributions to liquidity. The staking section is available on the website.

This way, LINE presents as a potentially profitable investment, whether earning rewards through the KavaRise program, leveraging liquidity provision for additional income, or simply holding LINE tokens for potential appreciation, users have diverse avenues to maximize their earnings while contributing to the growth of the LINE ecosystem. Featured vector image by VectorJuice, Freepik, and thank you for listening to this Hackernoon story, read by Artificial Intelligence. Visit hackernoon.com to read, write, learn and publish.