Lighter Launches LIT Staking Access Mechanism for LLP, Unclaimed Portions to Be Returned

KuCoinFlash

Release Time: 01/29/2026 01:17:34

Summary

Lighter introduces a new token listing mechanism that requires LIT staking to access the LLP (Liquidity Liquidity Provider) program. Users will earn daily returns on their unstaked portions, starting at 3% or 100 USDC. On-chain news confirms that LLP allocations are now verifiable through ZK (Zero-Knowledge) circuits. Traders will be able to use LLP as collateral in two weeks, improving capital efficiency. This update aligns the interests of LIT stakers and LLP holders, enhancing the overall utility of the token.

BlockBeats news: On January 29, Lighter officially announced on social media that it is launching a new rule—users must stake LIT tokens to gain access to LLP.

For the portion of the LLP allocation that exceeds the coverage of staked LIT (each LIT covers 10 USDC), the team will gradually return it to users. Starting tomorrow, up to 3% or 100 USDC (whichever is higher) of the uncovered amount will be returned daily, and the returned funds will be directly added to the user's USDC balance in their account.

This mechanism aims to align the interests of LIT stakers and LLP holders. More importantly, the distribution quotas for LLPs are now verifiable, and the relevant rules have been encoded into zero-knowledge proof (ZK) circuits.

The official stated that in two weeks, traders will be able to use LLP as collateral. This will significantly improve the capital efficiency of the Lighter platform and further enhance the practical utility of LLP and staked LIT.

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