The decentralized futures exchange Lighter has entered a new era with the implementation of a mandatory staking model for its native altcoin, LIT coin. This update, announced on Wednesday, ties access to liquidity pools to staking, thereby reorganizing incentives within the ecosystem. Initially, this structure affects the Lighter Liquidity Pool, requiring participants to lock their LIT coins. The goal is to enhance the balance between yield generation and risk distribution.
Mandatory Staking Era in Lighter Liquidity Pools
Under the new model, users wishing to invest funds in the Lighter Liquidity Pool (LLP) must stake LIT coins. The application operates on a 1:10 ratio. For each staked LIT coin, users can open pool investments of up to 10 USDC. This rule was immediately implemented for new participants, clearly defining entry conditions into the pool. Existing investors have been given a two-week adjustment period, ending on January 28, after which they must lock LIT coins to remain in the pool.
The liquidity pool is central to yield generation on the platform and also functions as insurance during liquidation processes. Lighter’s management emphasizes that a stronger alliance of interests between LIT coin holders and pool participants will be established, enhancing risk-adjusted returns. The plan involves extending similar mechanics to other open pools in the future, aiming at broadening the user base of hedge fund-like structures operating within the Blockchain.
Staking Incentives, Fee Structure, and Ecosystem Growth
Staking is not limited to pool access. Users who lock at least 100 LIT coins will enjoy zero withdrawal and transfer fees and will also be eligible for staking returns. The annual return rate will be announced later. For market makers and high-frequency trading firms, gradual adjustments in premium fees are being discussed. While general fees are expected to rise, discounts related to LIT staking aim to keep the lowest tiers close to existing levels. Individual transactions will continue to be free on the platform.
The update is anticipated to reach mobile users shortly, complementing the recently introduced mobile app. Last month, Lighter launched the altcoin and allocated 50% of its supply to AirDrop, incentive programs, and strategic partnerships within the ecosystem. The initiation of the LIT coin buyback process was confirmed on January 5. The platform, which transitioned to the public mainnet in October, reported a monthly transaction volume exceeding 200 billion dollars in December. The company secured a 68 million dollar investment at a 1.5 billion dollar valuation, led by Founders Fund and Ribbit Capital. The price of LIT coin has fallen by 2.56% in the last 24 hours, reaching 2.07 dollars.
