Lighter LP Vault

Summary

Ticker: llpUSDC Underlying venue: Lighter Underlying product: Lighter LLP (perp LP pool) Base asset: USDC Vault type: Single-venue perp LP vault

Short description

A tokenised vault for USDC supplied to Lighter’s LLP, giving depositors automated access to LP fees and incentives from Lighter’s perp markets in a single composable asset.

Description

USDC Lighter LP tokenises a depositor’s USDC into a position in Lighter’s LLP, turning it into a liquid, yield-bearing asset that accrues LP fees, funding, and protocol rewards from Lighter’s perp markets. Because the position is represented as a standard ERC-20 token, it can be easily transferred, used as collateral, or integrated across DeFi while continuing to track the performance of LLP.

1. How the Vault Works

1.1 Deposits and Shares

1. You deposit USDC into the USDC Lighter LP Vault.

2. The vault mints llpUSDC to your address.

3. The number of llpUSDC you receive represents your pro-rata claim on the vault’s assets and PnL.

Over time, the value of 1 llpUSDC (in USDC terms) floats based on the performance of the underlying LLP exposure (net of vault fees).

1.2 Routing to Lighter LLP

The vault aggregates deposits and deploys USDC into Lighter’s LLP according to a predefined strategy:

• Assets are added to Lighter’s LP pool.

• The vault inherits the LLP’s exposure profile across perp markets and stablecoins, per Lighter’s design.

• Yield sources typically include:

  • Trading fees generated on Lighter perp markets

  • Funding payments from trader open interest

  • Protocol incentives (if active)

1.3 Rebalancing & Risk Controls

Axtior monitors:

• LLP composition (how capital is distributed across markets and assets)

• LP PnL and volatility

• Funding and volume dynamics on Lighter

Within the defined risk envelope, the curator may:

• Adjust target exposure (e.g. scale down or pause deposits if conditions become unfavourable)

• Enforce TVL caps or other limits to keep LP risk within agreed parameters

2. Yield Model

The vault’s return profile is driven primarily by:

• LP fees: A share of taker fees paid by perp traders on Lighter.

• Funding: Net funding flows between longs and shorts, captured by the LP pool.

• Incentives: Any additional token rewards, fee rebates, or promotional programs run by Lighter.

The vault’s share price reflects net performance after:

• Venue-level fees and LP mechanics

• Any strategy-level fees defined for the vault

• Realised gains or losses from market moves

3. Who Is This Vault For?

This vault is designed for:

• USDC holders who want Lighter perp LP yield and composability with the rest of Ethereum DeFi.

• DAOs and treasuries that want single-venue Lighter exposure packaged into a clean ERC-20.

• Integrators building structured products that specifically reference Lighter as the underlying venue.

You should be comfortable with:

• Perp venue risk

• LP drawdowns during adverse market regimes

• The possibility of negative periods of performance

4. How to Interact

4.1 Depositing

1. Choose the USDC Lighter LP Vault in the interface.

2. Approve the vault to spend your USDC.

3. Deposit USDC and receive llpUSDC.

4.2 Holding & Using llpUSDC

While you hold llpUSDC:

• Your exposure is continuously tracking the underlying LLP position.

• You can transfer llpUSDC, use it as collateral where supported, or integrate it into other DeFi strategies.

4.3 Redeeming

1. Initiate redemption of llpUSDC for USDC.

2. The vault unwinds the corresponding exposure in Lighter’s LLP (subject to the venue’s mechanics).

3. You receive USDC based on your share of the vault’s assets at that point in time.