Lighter generates revenue through trading fees charged to takers on its on-chain order book. The protocol retains all fees as revenue.

Lighter is an app-specific zk-rollup (L2) purpose-built for order book trading. It operates its own chain with a custom execution environment, settling to Ethereum. The protocol supports perpetual futures and spot markets with sub-second finality and zero MEV.

Lighter team and investors own and govern the protocol. Lighter's investors include a16z, Lightspeed, Coatue, etc.

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Lighter

# Lighter Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of total fees generated by the protocol that is distributed to service providers, such as liquidity providers or market makers. For Lighter, this metric is set to zero. This reflects the protocol's current economic model where 100% of the trading fees (comprising both maker and taker fees) are retained by the protocol, with no portion currently allocated to supply-side participants.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events or external data.

## 3. Step-by-step calculation

### Component A: Supply-side fee allocation

- **Purpose**: To define the portion of fees distributed to service providers.
- **Logic**: A constant value of zero is assigned to the supply-side fees metric for all periods. This reflects that no distribution of fee revenue to external service providers or liquidity participants is currently facilitated by the protocol's fee mechanism.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Portion of fees distributed to service providers or supply-side participants.

LighterLIT

Supply-side fees

Supply-side fees

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