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- Lighter introduces staking for LIT token with key platform benefits.
- New LIT staking unlocks deposit features and yield opportunities.
- Zero fees for stakers and additional incentives for LIT holders.
Decentralized perpetuals exchange Lighter has introduced a staking feature for its native token, LIT, positioning it as a vital part of its platform’s ecosystem. The new update is expected to increase the platform’s usefulness and provide new benefits to token holders.
Beginning with the Lighter Liquidity Pool (LLP), users must now stake LIT to use it, and the 1:10 ratio means that 1 staked LIT unlocks a maximum of 10 USDC in deposits. New participants were instantly made available to this staking feature, introducing a new aspect into the platform’s workings.
To current users who have already deposited money into the LLP, Lighter is giving them a 2-week grace period until January 28, after which they will be able to retain their current positions without having to stake LIT. Staking LIT will be mandatory to keep money in the liquidity pool after the grace period.
This modification will align the interests of the LIT holders with those of the LLP participants, which Lighter believes will enhance risk-adjusted returns for the liquidity pool holders.
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Incentives for Stakers and Upcoming Fee Adjustments
The implementation of staking does not just relate to opening the liquidity pool but also to the additional incentives it offers users. For example, by holding at least 100 LIT, customers can withdraw and transfer funds, as well as make transfers free of charge. Moreover, stakers will also be offered yield, but the rate, expressed as an annual percentage rate (APR), remains undisclosed.
Later in the weeks, Lighter will also scale back the premium rates of market makers and high-frequency traders. Although the total number of fees will increase, discounts will be provided to stakeholders who deposit money in LIT so that the base level of fees will not be significantly higher than the current ones. Free access to the platform will remain open to retail traders.
Lighter’s decision to introduce staking aligns with its broader vision of making access to decentralized financial services more democratic, and it intends to introduce the mechanism to other pools on the platform. This will involve providing new avenues for yield production and increasing the application of staking across the ecosystem.
Expansion of Staking to Mobile and Platform Growth
Besides this, staking will be available to mobile users on the platform soon after Lighter launches a mobile app. This growth will help propel further growth, especially among retail users who are gradually resorting to mobile solutions to conduct their trading activities.
Having recently repurchased LIT tokens, Lighter has continued to ride the wave since the release of its public mainnet in October. The exchange has gained rapid popularity and is estimated to have a trade volume of more than 200 billion in one month of trading in December. This strong performance was coupled with a $68 million funding round, which pushed the platform’s valuation to $1.5 billion.
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