Lighter DEX introduces mandatory staking across its platform

Source Cryptopolitan

Lighter, a decentralized exchange platform, has introduced a new staking feature for its native token, LIT, requiring all users to stake LIT to access liquidity pools. Lighter launched LIT tokens last month, staking 50% of its supply, including airdrops and funding for future incentive programs.

Perpetual futures trading and the Ethereum-based DEX announced that they have introduced LIT staking as a core utility feature for accessing their tools and features, beginning with the Lighter Liquidity Pool (LLP). Staking LIT is now mandatory, and depositing into the LLP unlocks a 1:10 deposit ratio, meaning one stacked LIT unlocks deposits of up to 10 USDC. The rollout is mandatory for new users.

Existing LIT holders get a two-week grace period to begin staking

According to the Lighter DEX, existing members have a two-week window ending on January 28 to maintain access to LLP without staking. After the deadline, all participants will be required to stake their LIT tokens in the liquidity pools. The Perpetual futures trading DEX noted that the introduction of mandatory staking for LIT will lead to greater alignment between LIT holders and LLP holders, thereby improving LLP risk-adjusted returns. The platform promised to replicate similar mechanisms across public pools to align with the vision of democratizing on-chain hedge funds. 

Lighter noted that accessing liquidity pools (LPs) is vital across DEX ecosystems, as they provide insurance against liquidations and offer rewards to participants. The DEX platform announced that it will adjust premium fees for market makers and high-frequency traders in the next two weeks. According to the DEX platform, overall fees will increase, and staking LIT will introduce fee discounts, noting that current fee levels will be marked as the lowest fee tiers.

Staking 100 LIT will unlock zero fees for withdrawals and transfers in addition to the existing features. Staking is also being rolled out to mobile users in the coming days, according to Lighter’s statement. 

According to a recent Cryptopolitan report, Lighter launched its native token, LIT, at the end of last month, just two months after its public mainnet launch in October. The platform distributed 25% of the supply to users via airdrops, with the remaining 75% fully unlocked and ready for trading. Additionally, 50% of the supply was allocated to the team and the ecosystem. 75% of the LIT tokens are to be vested over time through buybacks, staking, and incentives for growth and governance.

Lighter to detail premium fee tiers for trading firms to adjust algorithms

Lighter plans to roll out the exact details of the premium fee tiers soon so that trading firms can adjust their current algorithms accordingly. The DEX confirmed that retail trading will remain free on the platform. Importantly, staking LIT on Lighter will unlock yields, with the firm set to begin publishing the APR once it goes live. Based on the previous mechanism, yields were generated from staking rights granted to premium users. 

The perpetual futures trading DEX platform gained popularity after launching its public mainnet in October and reported approximately $200 billion in trading volume in December, according to DeFiLlama data. The platform outperformed other Perp rivals such as Aster, which registered $177.5 billion in December, and Hyperliquid, which recorded $169.3 billion during the same period. Lighter has so far achieved $54.9 billion in trading volume this month, against Hyperliquid’s $81.4 billion. 

The LIT token price was down approximately 12% at the time of publication, trading at $1.88, with a market cap of $469 million. The launch of LIT in December saw the price surge to $2.62 before dropping to $2.30 later. The token reached an ATH of $4.04 24 hours later, but has since been in a downward trajectory. 

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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