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
Yield share	Portion of sUSDb Vault yields (0-80%)
Lighter Staking Rewards	Native rewards from Lighter

Capacity

Each staked LIT provides 10 USD of deposit capacity:

sUSDb vault deposit cap = LIT Staked × 10 (USD)
Example: 100,000 LIT = 1,000,000 USD capacity

Utilization Rate

How much capacity is being used:

Utilization(sUSDb vault) = USDC Deposited ÷ Total Capacity
Example: 800,000 USDC ÷ 1,000,000 capacity = 80%

Dynamic Yield Share

The Pool Yield you earn adjusts based on utilization of sUSDb vault:

Utilization	Dynamic Yield Share Rate
0% - 80%	0% → 30%
80% - 90%	30% → 50%
90% - 100%	50% → 80%

Higher utilization = Higher Pool Yields = Better returns for LIT Staker.

[Graphic]

Your Earnings

Calculation

Your Daily LIT Pool Yield = Total LIT Staking Pool Yield × (Your staked LIT ÷ Total LIT Staked)

Example:
- Total Pool Yield today: 1,000 USDC
- Your staked LIT: 10,000 LIT (10% of pool)
- Your share: 1000 * 10% = 100 USDC

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

Settlement

At 7:00 UTC daily the following occurs:

1

PnL Calculation

PnL for the day is calculated.

2

Pool Yield Distribution

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

3

Stakes / Unstakes

Stakes and unstakes submitted are processed.

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Next: Stake & Unstake