sWICK

what is sWICK

sWICK is Wick's buyback-and-accumulate token. When Wick products generate revenue, that revenue is converted into WICK through market buybacks. The bought WICK accumulates for sWICK holders based on their share of the sWICK supply.

Protocol revenue buys WICK, and sWICK holders accrue the WICK that gets bought.

The model is intentionally simple. Wick does not rely on emissions to create token demand. It routes product revenue into one shared value sink, making sWICK the place where exchange activity, wLLP usage, wLIT adoption, and arbitrage capture converge.

how it works

The flow is straightforward: Wick products generate revenue, that revenue is converted into WICK, and the purchased WICK accrues to sWICK holders pro rata. Holders can later exit back to WICK through either delayed full redemption or instant discounted exit.

Revenue comes from several independent product lines. The exchange contributes swap fees from Wick liquidity pools. wLLP contributes a 10% protocol fee on auto-compounded insurance-fund yield, plus swap fees from wLLP wAMM pools and revenue from external composability. wLIT contributes staking protocol fees. Wick arbitrage contributes profits captured by Wick's in-protocol arbitrage across Wick pools, the Lighter orderbook, and external venues.

why the revenue sink matters

sWICK gives every Wick product the same destination for value. Exchange volume, wLLP growth, wLIT adoption, and internalized arbitrage each have their own source of revenue or yield, but they do not need separate governance tokens; they all route protocol value into WICK accumulation.

Revenue is not paid out as temporary farming emissions, and it is not scattered across unrelated reward programs. If one product earns, it contributes to the same buyback engine. If one product slows down, the others can still keep the sink active.

Buybacks are also easier to verify than abstract tokenomics promises. The mechanism can be tracked on-chain: revenue enters, WICK is purchased, and the purchased WICK accumulates for sWICK holders.

wLIT and sWICK

Wick pools LIT through wLIT. That stake backs wLLP capacity, lower fees and faster execution for Wick arbitrage against the Lighter orderbook, and lower fees for sWICK holders who link a trading wallet.

Fee discounts from the LLP go to sWICK holders and Wick's arbitrage accounts first. sWICK holders receive them through ownership. Wick uses Lighter's fee discount transfers to assign unused discounts to linked trading addresses. Traders who pay for access through Lighter add protocol revenue that still flows into the same sWICK buyback engine.

wLLP deposit access

Holding sWICK increases how much wLLP you can mint. Deposit allowance increases with your sWICK holdings and available wLLP capacity. The system ceiling still comes from wLIT (1 LIT staked unlocks up to 10 USDC of LLP deposit capacity). See wLLP capacity.

exiting sWICK

sWICK holders can exit back to WICK through two paths. The standard path is a 14-day redemption for full 1:1 WICK value. During that window, the exit can be cancelled and the position returned to sWICK.

The second path is an instant exit for immediate liquidity at a 5% discount. That means the holder receives 95% of the WICK value with no waiting period.

The delay protects the buyback engine from short-term round trips and prevents gaming wLLP deposit access, while the instant path keeps the position practical for holders who need liquidity. Both the redemption window and instant-exit discount are configurable parameters that governance can adjust as market conditions evolve.