Liquidity Providers Cash in as Linea Ignition Fuels Etherex Surge

Linea Ecosystem’s Etherex (REX) has seen a significant surge in price, surpassing $0.5 per token, with a 23% increase recorded within the past 24 hours. The decentralized exchange (DEX) protocol, Etherex, operates within the Linea ecosystem and is currently one of the primary liquidity hubs for traders and liquidity providers. This recent price movement underscores the growing momentum within the Linea DeFi space, particularly with the launch of the Linea Ignition program, which has incentivized liquidity provision across key DeFi protocols.

The Linea Ignition program, which is designed to accelerate total value locked (TVL) on the platform, has been a critical factor in Etherex’s recent performance. The initiative, supported by the Linea Consortium, offers liquidity providers (LPs) substantial rewards in the form of LINEA tokens. Participants can earn incentives by contributing to liquidity pools on leading DeFi platforms like Etherex, Aave, and Euler. The program includes over $1 billion in TVL as its target and is set to run until October 26, 2025. Etherex pools, in particular, have seen increased participation due to the additional $REX rewards layered on top of the main LINEA incentives.

According to the incentive structure of Linea Ignition, rewards for Etherex liquidity pools are allocated based on the swap volume and slippage generated by each participant. The use of an Inverted U-Curve Incentive Function ensures that liquidity providers who support the market during periods of high volatility or price discovery are rewarded more significantly. This design aims to encourage liquidity provision during times of market stress, which is crucial for maintaining stable and efficient trading conditions on the platform.

The Linea token, which is expected to officially launch in the coming weeks, has already begun to attract attention in pre-market trading. Major exchanges such as Binance, Bybit, and Hyperliquid have offered leveraged contracts for early trading, with the token currently valued at around $0.05. This valuation implies a fully diluted valuation (FDV) of approximately $3.6 billion, placing Linea in a competitive position among other Layer-2 solutions like Arbitrum and Optimism. The Linea team has remained cautious with the token launch, aiming to time it strategically to maximize long-term ecosystem growth rather than immediate speculative gains.

The growing interest in Linea and its ecosystem is further reflected in the broader DeFi landscape. As Etherex continues to attract liquidity and trading volume, it reinforces the platform’s role as a key player in the Linea DeFi strategy. With the support of the Linea Ignition program and the broader DeFi incentives offered by the Linea Consortium, Etherex is positioned to play a critical role in expanding the ecosystem’s TVL and native yield mechanisms in the near future.

As of now, Etherex remains a focal point for DeFi activity on Linea, with its recent price performance indicating strong user and market engagement. The ongoing incentive programs and liquidity initiatives are expected to further solidify its position within the Linea ecosystem and contribute to the broader adoption of decentralized trading solutions.

Source: [2] Welcome to Linea Ignition (https://linea.build/blog/welcome-to-linea-ignition) [5] Etherex (REX) Price Today, News & Live Chart (https://www.forbes.com/digital-assets/assets/etherex-rex-2/) [4] LINEA token hits pre-market trading at $0.05 ahead of TGE (https://crypto.news/linea-token-hits-pre-market-trading-at-0-05-ahead-of-tge/)