How it works

The LIT Staking Pool is where LIT holders stake to provide capacity and earn yield.

Why Stake LIT?

By staking, you earn from two sources:

Source	Description
Pool Fee Share	Portion of sUSDb Vault yields (0-80%)
Lighter Staking Rewards	Native rewards from Lighter

Your staked LIT provides deposit capacity that stablecoin holders use — you get paid for it.

Capacity

Each staked LIT provides 10 USD of deposit capacity:

Capacity = LIT Staked × 10 USD

Example: 100,000 LIT = 1,000,000 USD capacity

Utilization Rate

How much capacity is being used:

Utilization = USDC Deposited ÷ Total Capacity

Example: 800,000 USDC ÷ 1,000,000 capacity = 80%

Dynamic Pool Fee

The Pool Fee you earn adjusts based on utilization:

Utilization	Pool Fee Rate
0% - 80%	0% → 30%
80% - 90%	30% → 50%
90% - 100%	50% → 80%

Higher utilization = Higher Pool Fee = Better returns for you.

Pool Fee Examples

Utilization	Pool Fee
50%	18.75%
80%	30%
95%	65%

Your Earnings

Calculation

Your Daily Pool Fee = Total Pool Fee × (Your LIT ÷ Total LIT Staked)

Example:
- Total Pool Fee today: 1,000 USD
- Your LIT: 10,000 LIT (10% of pool)
- Your share: 100 USD

Earnings Depend On

Factor	Effect
Higher utilization	Higher Pool Fee rate
More LLP yield	More total fee
Larger stake	Bigger share
More total stakers	Smaller share

Fees Only on Profit: Pool Fee is only distributed when LLP is profitable. On loss days, no Pool Fee is distributed.

Daily Settlement

At 15:00 UTC+8 daily the following occurs:

1

PnL Calculation

PnL for the day is calculated.

2

Pool Fee Distribution

If LLP is profitable, the Pool Fee is distributed to stakers.

3

Stakes / Unstakes

Stakes and unstakes submitted are processed.

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Next: Stake & Unstake