The day before the token launch, the community asked the founder of Lighter ten questions.

This article is from: jez (@izebel_eth )

Compiled by Odaily Planet Daily ( @OdailyChina ); Translated by Azuma ( @azuma_eth )

Editor's Note: Based on market rumors and odds on Polymarket, it seems no secret that Lighter will launch its TGE token on December 29th. At this crucial moment before the token launch, Lighter founder and CEO Vladimir Novakovski participated in an interview with jez (@izebel_eth) on his Twitter Space.

During the conversation, Vladimir answered questions from the community regarding the token release date, points allocation, witch screening, product updates, future direction, and community communication.

The following is a selection of Vladimir's interview, compiled and translated by Odaily.

Opening

• Host (jec): This is my first time hosting Twitter Spaces. So please bear with any unexpected situations that may arise. Today I'm delighted to have Vladimir Novakovski, the founder and CEO of Lighter, with me. I'll be asking him some questions, which will come from group chats with myself, Discord, Twitter, and other communities. Before we begin, Vladimir, is there anything you'd like to say first?

Vladimir: No, just ask away.

Q1: Directly inquire about the token issuance time

• Host: The first question is simple, when will the token be launched?

Vladimir: You know, we said before that "this holiday season is going to be very popular," so I think the community can interpret that statement in different ways.

Q2: The future direction of Lighter

• Host: Okay, let's continue our discussion starting with the roadmap. Where do you plan to take Lighter in the coming months and years? By the way, let's talk about this first: does the so-called "Sun-exclusive ZK circuit" really exist?

Vladimir: Haha, there was some FUD (fear, confusion, and uncertainty) online about this before, but it was mostly just a joke. We released the ZK circuit code this week, and quite a few people have already checked it out. However, it's important to note that the points system doesn't go through these circuits. So, for those who previously earned a lot of points and received LLP shares, that portion is unverifiable.

If the native token can be used for staking, acquiring LLP shares, or unlocking other product permissions in the future, that can be verified. However, the current points system itself has not been circuit verified , so the claim that it "leaves a backdoor in the circuit for whales" is essentially a joke.

• Host: Let me put it this way, every time I hear the word "circuit," my mind goes blank. Suppose I know nothing about ZK and am too lazy to really understand it, how would you explain to me the practical results that Lighter can achieve by using ZK circuits?

Vladimir: Basically, this means that everything done in Lighter is verifiable and will be published to the Ethereum network.

From a practical standpoint, if you are a trading user, you don't need to worry about your orders being executed unfairly in a different order than another trader's, nor do you need to worry about your positions being closed at the wrong price; all of these can be guaranteed by the circuit.

As Lighter's scope expands, everything will remain verifiable. This also means that the circuit can coexist with other things happening on Ethereum, as well as the EVM sidechain we are developing. We can talk more about this later.

• Host: Let's give a more specific example.

Vladimir: For example, you can use any type of asset as collateral. For instance, you can use ETH as collateral, or you can use assets on Aave or Morpho as collateral for Lighter.

• Host: So, I can integrate existing Ethereum L1 DeFi protocols? Is this the integration method you envision? Do you prefer integrating the existing L1 ecosystem, or building a completely independent L2 ecosystem?

Vladimir: The core purpose of L2 is to build an ultra-high-performance exchange on top of Ethereum, and we have already achieved this. Currently, Lighter L2 has the highest TPS on Ethereum and is also the fourth largest L2 in terms of TVL.

The significance of L2 lies in supporting high-performance applications, such as perpetual contract trading and other trading scenarios requiring extremely high performance. However, many DeFi applications do not actually require such high performance; they already run well on Ethereum. Therefore, we will not reinvent the wheel but choose to combine it with the existing DeFi ecosystem. At the same time, new high-performance applications will emerge on L2, and some new asset classes that do not yet exist (such as RWA, options, etc.) will be introduced.

What is certain is that there is already a very large DeFi ecosystem on Ethereum, and combining with it will present a huge opportunity.

Q3: Opportunities and Risks of Unified Margin Deposits

• Host: You launched your spot trading service a month ago, and you also mentioned that spot positions can be used as collateral. This naturally leads to the next question: What are your thoughts on the Universal Cross-Margin model? How are it designed and risk-controlled?

Vladimir: We will proceed step by step; it's something that must be done, but only under strict risk control. Even within the stablecoin collateral system, issues such as liquidation mechanisms and ADL (automatic deleveraging) need to be fully considered. As you've seen, there has been a lot of discussion about ADL in recent weeks.

We'll start by supporting multiple stablecoins as collateral , such as USDC (we're working with Circle to roll out native USDC for Lighter). Later, we can support more stablecoins and allow users to freely switch between them as collateral. Once this is complete, we'll gradually add mainstream assets like ETH and BTC, and even introduce native tokens as collateral. However, different assets will have different risk models —higher-risk assets may require higher liquidation fees. These models need time to refine, but they are one of our key focuses next year.

Q4: Lighter's listing strategy

• Host: In the risk model, trading assets are just as important as collateral assets. What is your expansion strategy for listing new tokens?

Vladimir: This is a very interesting direction. Native tokens will play an important role here, helping to achieve a more permissionless listing experience. We are currently in communication with many teams, not only regarding perpetual contracts but also spot assets, such as the tokenized stocks that Robinhood is working on.

In the long run, if a sound incentive alignment mechanism can be formed within the ecosystem, users holding a certain amount of native tokens will be able to exert a greater influence on token listing choices and the direction of the ecosystem.

• Host: This raises another question. What are your views on tokenized stocks, and RWA assets like Pokémon cards and precious metals? What is the path forward in the current regulatory environment?

Vladimir: I think this is a huge opportunity for the next few years. We've finally reached a point where DeFi and TradeFi are no longer just coexisting, but can truly be combined.

We've already spoken with Robinhood, and discussed these issues with traditional exchanges and large hedge funds. We've also been involved in some regulatory discussions in Washington… I think the first step might be supporting the tokenized stocks that Robinhood is already working on, but there will definitely be more developments to come.

Q5: Mobile Layout

• Host: Let's move on to a topic that I'm personally very interested in: what are your views on mobile devices?

Vladimir: As I mentioned before, we've invested a lot of time in mobile development and are indeed developing an app, which is progressing quite well. Some early traders in the community have already tested it, and we'll be releasing announcements in the coming weeks , so stay tuned.

Of course, we welcome other developers to build applications. However, some types of traders prefer that the same team develop the core protocol, desktop app, and mobile app simultaneously, so this is an area we are focusing on and hope will be used by many traders.

• Host: When discussing mobile, I usually divide it into two categories. One is for users already in the crypto world, where mobile offers greater convenience; the other is for new users outside the crypto space, where mobile can lower the barrier to entry. Which direction will your mobile development focus on?

Vladimir: Yes, our mobile app will have two modes. One is a more professional mode, suitable for users who are already active in trading on the desktop but need to operate while on the go; the other is a lighter mode, aimed at newcomers who are just starting out.

• Host: So will it include its own deposit and withdrawal process? Or will users still need to go through a path like Arbitrum?

Vladimir: We're still finalizing those details, but the goal is definitely to achieve a very smooth deposit experience. We're in talks with some teams that do this to make the process very simple. Of course, there are still some decisions to be made, but that's definitely our goal.

Robinhood does this very well—the time between you first hearing about the app and completing your first transaction should be very short. This is also one of our very clear goals.

Q6: Partnership with Robinhood

• Host: You've mentioned Robinhood several times. What have you gained from your relationship with Vlad Tenev (the founder of Robinhood)? Is there potential for collaboration between Lighter and Robinhood in the future?

Vladimir: Absolutely. We've already mentioned tokenized stocks, which is one of the directions we've started exploring together. Beyond that, you can see what they're doing—they have centralized products, but they've also done a lot of experimentation at the wallet level, exploring how to improve the overall experience. Considering they're also building L2 within the Ethereum ecosystem, you can imagine many interesting combinations in the future.

Once this is truly implemented into a concrete product, we'll have even more to share. From a learning perspective, there's one thing I think has long been underestimated in the crypto industry: truly being user-centric and prioritizing user experience; and another is not being afraid to try new business models.

• Host: Could you elaborate a bit more?

Vladimir: Take Robinhood as an example. In its early days, the zero-fee model was a very crazy idea. Even within the team and among early users, it wasn't certain whether it was feasible.

When we tried a similar pattern on Lighter, it was the same. You have to experiment constantly in different policy spaces, rather than copying the same charging structure just because "everyone's doing it this way." That's not necessarily the optimal solution. This doesn't mean every new idea will succeed, but there are many paths to innovation.

For us, the core is to provide the best experience for retail investors, which will naturally attract trading firms and market makers, thus generating revenue. This logic itself is very powerful. My experience at Citadel taught me this, when Citadel expanded from a hedge fund to securities, it was considered a crazy idea—wasn't that what investment banks are supposed to do? Is this securities? But now, many large hedge funds have their own securities divisions.

Q7: Fee and Revenue Model

• Host: Many people are curious about your fee structure, revenue model, and sustainability. Many are asking what will happen when you re-enable charging. So, from a broader perspective, how do you view your business model, and where does your real revenue come from?

Vladimir: Actually, transaction fees were introduced in October . Overall, we introduced a premium tier and are also considering more tiers, mainly to serve higher-frequency traders. We've made significant optimizations to TPS, and it now supports higher-level trading needs.

Overall, in the first two months after commission fees were introduced (and now it's almost three months), commission revenue actually exceeded our expectations. Interestingly, we were initially worried that some trading firms on Lighter might reduce their trading volume after the commission fees went live, but we haven't seen that happen at all. Instead, the feedback we received from them was that they actually preferred a multi-tiered fee structure based on latency, as it made it easier for them to model and design different trading strategies.

So far, we are satisfied with our fee performance. As we launch new products, we will continue to experiment with different fee models. Currently, our vision of "free for retail investors, better for the overall ecosystem" has good data to support it.

Q8: Points-based system and witch screening

• Host: GLC Research has a follow-up question. They are concerned about whether user and market maker participation can be sustained once the points subsidy ends.

Vladimir: Ultimately, the design goal of the points system and the future of token economics is incentive alignment. You can imagine if you were an early trader on Robinhood and also held shares in it; or if you traded on the NYSE and also held shares in Citadel Securities or Jane Street—that's exactly what token structures can achieve, and it's one of the truly exciting things about this space.

Indeed, there are some people who are "not real traders" but are just doing wash trading, and we have already reduced the points of many of these accounts this week. However, we must also acknowledge that there is still a lot of real trading demand in this market, and this demand is currently mainly in CEXs.

Looking ahead, with the further integration of CeFi and DeFi, the market opportunities remain enormous. If we can create a truly powerful product in this space, trading activity will naturally follow. From our perspective, the current scale on Lighter represents only a small fraction of the overall market opportunity. Therefore, we will continue to focus on product development and maintain ongoing communication with users. Incentive alignment is a good thing, not a bad thing.

• Host: The second season of the points program has ended. You just mentioned reducing the points for witch addresses, and many people are concerned about your identification methods—what kind of behavior will be judged? Are there any false positives? Is there an appeal mechanism?

Vladimir: Yes, we do have an appeals mechanism, but so far, the number of appeals is less than we expected. If users feel the algorithm is unfair to them, they are welcome to fill out the appeal form on Discord. We will not disclose the specific details of the algorithm because we do not want to be targeted for "optimization."

Overall, this is a significant data science endeavor, including cluster analysis and behavioral pattern recognition. Our quantitative team (whose daily work involves liquidity and market maker integration) also spent several weeks involved. Furthermore, we've consulted with other protocol providers who have done similar work, as well as individual "witch hunters." We are confident in the final results, but if any misjudgment is indeed found, please appeal.

Q9: Token Economics Model and Value Capture

• Host: These points will be converted into tokens in the future. Could you share the token economic structure? Approximately what percentage of the total supply will the points program represent?

Vladimir: We will release a more detailed announcement soon. Overall, 50% of the tokens will be allocated to the community, with a significant portion going to the Q1 and Q2 points programs. The specific percentages will be announced soon. Based on current market feedback, expectations and the actual design are largely aligned.

• Host: What about some recent large on-chain transfers (such as transfers to Coinbase)? Could you explain that?

Vladimir: Those transfers are unrelated to the airdrop; they are primarily escrow arrangements for investors and the team. We are currently working with two escrow institutions, so the on-chain actions you see are unrelated to the airdrop.

• Host: Some people are worried about VC funding issues and whether the value structures of "equity vs. tokens" are aligned. Can you respond to that?

Vladimir: Of course. Our position is very clear—value will ultimately be realized in the token, and all investors participate under this premise.

We adhere to one principle: the token is the core alignment mechanism for all stakeholders—early users, the team, and investors are all in the same boat. There will be no dual-track structure where "the token has one set of value logic, and equity has another." Everything will revolve around the token , and further details will be released gradually.

• Host: So how exactly do tokens capture value?

Vladimir: We'll elaborate later, but one thing is certain—revenue, new products, and ecosystem expansion will all revolve around the token. As the Lighter ecosystem and trading categories expand, value will naturally flow back to token holders.

If you draw an analogy to traditional finance, imagine that everyone involved in TradeFi could hold shares in brokerages, market makers, and data companies—and right now, this is happening on-chain. That's the "big picture" of tokens in my eyes.

• Host: Will you release revenue data in the future? Will it be linked to tokens programmatically?

Vladimir: Yes, we will release revenue data. How this revenue will be used and whether it will be tied to a token mechanism will be clarified gradually as the product launches. The core goal remains the same: to solidify value in the token and drive ecosystem growth, thereby enhancing the rights of token holders.

Q10: Please give more support to the Chinese-speaking region!

• Host: I have another question from Discord, mainly for Chinese users and other non-English, more global communities: what are your plans for local language support?

Vladimir: We currently support about 10 languages. Are you referring to support for social media platforms like WeChat groups?

• Host: Yes, regional community management.

Vladimir: I understand, I think that's a very reasonable question. We are indeed expanding our team and becoming more localized.

We already have several members in Asia and are building a more complete regional structure, and we will definitely continue to recruit relevant personnel. So we have a clear plan in this regard.