Headline: Circle revenue-sharing deal could be the lifeline Lighter’s perpetual DEX needs — and a boost for LIT Lighter’s perpetual DEX (LIT) has reportedly struck a revenue-sharing arrangement with Circle to capture interest income generated by USDC held on the platform — a move analysts say could materially shore up the protocol’s finances and act as a bullish catalyst for its native token. How big could it be? - Ryan Watkins, co-founder of crypto VC Syncracy Capital, estimates the arrangement could be worth $30–40 million a year. - Watkins argues the significance isn’t only more buybacks; it effectively subsidizes traders by lowering funding costs, which should raise open interest (OI) and trading activity. Why Lighter needs a boost - Lighter’s perp ecosystem has weakened since the end of its second farming phase in late 2025, when many airdrop-driven participants left. - DeFiLlama data: weekly perp volumes plunged from roughly $300 billion in November 2025 to below $50 billion by February 2026 — a ~6x drop in two months. - Monthly revenue fell from about $24 million in November to $13 million in January; through the first half of February Lighter generated only $1.7 million. Why interest income matters - Circle earns interest by investing USDC reserves in U.S. Treasuries. Platforms that capture a share of that yield can add a steady revenue stream to protocol economics. - Coinbase’s arrangement captures 100% of interest on USDC it holds on-platform and 50% on USDC outside its platform — reportedly producing over $900 million for Coinbase in 2024. - Protocols can use such revenue for buybacks, token accrual, or trading fee rebates; some projects instead launch their own stablecoins (e.g., Hyperliquid’s USDH) to retain all interest income. What’s public (and what isn’t) - Precise terms of the Circle–Lighter agreement haven’t been disclosed, but some observers link it to Lighter’s recent announcement of trading fee rebates. If true, the deal could meaningfully improve token economics and trader incentives. Market reaction and outlook - Syncracy’s Daniel Cheung called LIT “criminally undervalued,” arguing the perps category will outgrow expectations and that LIT trades at a steep discount to peers. - LIT jumped about 10% after the update, bringing February gains to roughly 20%. Technical watchers say a further recovery to ~33% is possible if price reclaims the $1.70 level; downside trendline support remains key. Takeaway A Circle revenue-share could provide Lighter with a recurring, non-trading revenue stream — a direct subsidy for traders and indirect support for tokenomics through buybacks and rebates. With perps volumes and revenues under pressure, that kind of income could be an important stabilizer — but details and implementation will determine how much it changes Lighter’s trajectory. Disclaimer: This summary is informational only and not investment advice. Cryptocurrency trading is high risk; do your own research before making any decisions. Read more AI-generated news on: undefined/news

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