wLIT

what is wLIT

wLIT (wickLIT) is Wick's liquid staking token for LIT, the native gas token of the Lighter network and Lighter EVM. It lets LIT holders earn staking rewards without giving up liquidity: deposit LIT, receive wLIT, and keep using that position across DeFi while rewards accumulate in the background.

Stake LIT, keep liquidity, and let rewards raise the wLIT:LIT exchange rate automatically.

how it works

Deposit LIT into the wLIT vault and receive wLIT in return. The vault stakes the deposited LIT into Lighter's native staking module, earning staking APR funded by Lighter's protocol trading-fee revenue. Rewards are distributed to stakers through daily LIT buybacks run as 24-hour TWAPs.

Those rewards do not appear as extra tokens in your wallet. They compound into the wLIT:LIT exchange rate, so your wLIT balance stays fixed while each wLIT becomes redeemable for progressively more LIT.

wLIT lives natively on Lighter EVM, Lighter's EVM-equivalent rollup that is ZK-proven via OpenVM and settles on Ethereum. Because Lighter EVM composes atomically with Lighter Core, wLIT can interact directly with Lighter Core in a single transaction. LIT also serves as the gas token across Lighter EVM, so staking it through wLIT reduces the active circulating supply used for transaction fees.

wLIT is fully liquid and transferable: hold it, trade it, use it as collateral, or bridge it to other chains while the underlying LIT continues earning staking yield. Unstaking (redeeming wLIT back to LIT) requires a 7-day cooldown period; the underlying LIT is released after the cooldown completes. During the cooldown, the position continues to earn staking rewards.

exchange rate

At launch, the exchange rate starts at 1:1, one LIT deposits into one wLIT. Over time, staking rewards flow into the vault, increasing total assets while the number of shares stays the same. The rate only goes up.

After launch, new depositors receive fewer wLIT per LIT because each wLIT already represents accumulated rewards. This is expected behavior: the exchange rate reflects the vault's total value per share.

how wLIT compounds

Traditional staking asks users to claim rewards, restake, wait, and repeat. Each cycle adds gas costs, missed compounding windows, and active monitoring. wLIT turns that loop into one position.

Rewards automatically roll back into the vault, increasing the exchange rate without any action from the holder. auto-compounding means wLIT can outpace simple staking where rewards are earned but not continuously restaked.

The lifecycle is simple:

1. deposit LIT on Lighter EVM and receive wLIT at the current exchange rate
2. earn automatically as staking rewards raise the exchange rate; your wallet balance does not rebase
3. use wLIT across DeFi as collateral, in LP positions, in strategies, or in cross-chain apps that support it
4. exit when needed by redeeming, or by swapping wLIT to LIT on supported markets

DeFi-ready by design

wLIT follows the common ERC-4626 tokenized-vault pattern used across DeFi. For users, the important part is simple: apps can treat wLIT like a transferable, yield-bearing token.

The same wLIT position can be reused across DeFi:

• borrow against it on lending markets while staking yield keeps accruing
• provide liquidity in wAMM pools and earn rewards
• deposit into yield vaults or farms that route yield for you
• trade your staked LIT on Lighter EVM without unstaking first

cross-chain wLIT

wLIT is designed to move across chains so holders can use the same staking position wherever supported apps are live. Cross-chain transfers use a LayerZero OFT burn-and-mint model rather than creating separate wrapped versions on every chain.

The value-accruing design is naturally cross-chain friendly. Since wLIT balances do not change, only the exchange rate does, there is no rebase synchronization problem between chains. The staking position remains anchored to the wLIT vault on Lighter EVM while the token can be used in supported cross-chain markets and applications.

how wLIT fits into Wick

wLIT matters because it is not just a yield wrapper. It is the staking leg of Wick's product stack.

wLIT and wLLP are under the same operator on Lighter. wLIT represents Wick's staked-LIT position; wLLP represents Wick's Lighter Liquidity Provider (LLP) position. Every LIT deposited into the vault joins one pooled staking position that supports several primitives at once.

The relationship is reinforcing:

• more wLIT means more staked LIT
• more staked LIT means more wLLP capacity, sWICK fee discounts, and swap fees
• more wLLP capacity means a deeper liquidation and ADL backstop
• wLIT, wLLP, exchange, and Wick arbitrage revenue all feed sWICK buybacks