Lighter [LIT] Perpetual DEX has reportedly reached a revenue-sharing agreement with Circle on interest income from USDC deposits on the platform. According to analysts, this could be a key lifeline and bullish catalyst for its ecosystem and native token.
The deal could generate between $30 million and $40 million in annual revenue, according to projections by Ryan Watkins, co-founder of crypto VC firm Syncracy Capital. watkins aggregate,
“The reason this is interesting is not because it will directly lead to more buybacks (it will indirectly). It is a subsidy for traders who will now pay less financing for positions. It should increase open interest.”
Potential impact on Lighter
Since the end of the second cultivation phase in late 2025, Lighter airdrop farmers have declined, derailing perpetual volumes and open interest (OI).
According to DeFiLlama, DEX weekly criminal volumes abandonment from about $300 billion in November 2025 to less than $50 billion in February 2026 – a 6-fold decline in the past two months.
With growth slowing, monthly revenue also fell by almost half, from $24 million in November to $13 million in January. So far in the first half of February, Lighter has generated just $1.7 million, underscoring increased pressure on its revenue stream.
Source: DeFiLlama
Since it also does buybacks like Hyperliquid, such a revenue sharing agreement could help bolster token accumulation and trading fee refunds.
For those unfamiliar, Circle earns interest income on USDC reserves invested in US Treasuries.
For USDC circulating on Coinbase, the exchange earns 100% interest income on USDC reserves. Additionally, it captures 50% of USDC revenue outside of its platform and the deal will reportedly net Coinbase over $900 million in 2024 alone.
Other platforms have pushed to capture similar revenue streams or opt for their internal stablecoin and retain all interest income. This is what led to Hyperliquid’s native USDH stablecoin.
That said, details about the deal shared with Lighter and Circle were not public at press time. However, some market watchers speculate that the deal may be behind the recent cuts in trading rates. announced through the platform.
For its part, Syncracy Capital Daniel Cheung believe that LIT may be “criminally undervalued” at current levels.
“The category of criminals will be larger than anyone expects and $LIT is criminally undervalued at 5% of HYPE with 10% of its fees.”
Will the LIT extend its recovery?
LIT rose 10% after the update, bringing its February rally to 20%.
If the uptrend extends, the recovery could reach 33% if the $1.7 level is reached. On the downside, trendline support would be a key support to watch.
Source: LIT/USDT, TradingView
Final thoughts
- Lighter has reportedly reached an agreement with Circle to share interest income generated by USDC circulating on the platform.
- Analysts believe the deal could help drive fee refunds and attract merchants to the platform again.
