What is Lighter in crypto?

Lighter is a crypto exchange for trading perpetual futures that runs as a zero-knowledge (zk) rollup on Ethereum. It works like a perp DEX with a central limit order book, but it posts cryptographic proofs to Ethereum showing its exchange operations were executed correctly. Its native token is LIT.

What is the Lighter crypto exchange?

Fortune reported in November 2025 that Lighter was founded in 2022 by Vladimir Novakovski, a former Citadel trader, and launched in January 2025 after about two years of development. The same report said it had raised a 68 million dollar round led by Founders Fund and Ribbit Capital, with Haun Ventures and Robinhood taking part.

Fortune described Lighter as a rival to Hyperliquid. The main design difference is that Hyperliquid runs its own layer 1 chain, while Lighter is a layer 2 that settles on Ethereum.

How does Lighter zk technology work?

According to Lighter's technical docs, a sequencer orders transactions first in, first out, and runs the exchange logic. Its output is turned into proofs, and a custom proving engine combines many proofs into one batch proof. Ethereum holds deposited assets and the official state, which only updates after a proof is verified on-chain. For the idea behind this, see what is a rollup.

Each update also posts compressed data blobs to Ethereum so users can rebuild their own account state. The docs describe a priority request queue on Ethereum for withdrawals and reduce-only orders. If the sequencer fails to process those in time, the contract freezes in an escape hatch mode. Users can then prove their balances from the posted data and withdraw on Ethereum.

How does the Lighter perp DEX handle fees and liquidations?

As of November 2026, Lighter's docs say standard accounts pay no maker or taker fees on regular perpetual and spot orders. Some advanced order types carry a small fee. Opt-in premium and plus accounts, aimed at higher-volume traders, pay fees in exchange for features such as higher rate limits. Fee terms can change, so check the docs.

Liquidations happen in stages. An account below its initial margin can only reduce positions. Below maintenance margin, positions are closed step by step. Below a final close-out level, the Lighter Liquidity Pool (LLP), which acts as an insurance fund, takes over positions. If the LLP cannot cover losses, auto-deleveraging closes positions against traders on the other side.

What is the Lighter token?

Whale Alert reported on December 30, 2025, that Lighter had launched LIT. Half the supply went to the ecosystem, including a 25% airdrop to points program users. The other half went to the team and investors with a one-year lock and three years of vesting.

Lighter's docs list two main uses for LIT. Staking it gives access to deposit into the LLP and earns rewards. Staking also cuts fees on premium accounts. The protocol also uses trading fee revenue for regular LIT buybacks. Trading perpetuals with leverage carries a high risk of loss, and this guide only describes how the platform works.