sWICK

what is sWICK

sWICK is staked WICK. Stake WICK and receive sWICK 1:1, giving you a claim on the revenue generated across every Wick product.

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

Wick products generate revenue, that revenue is converted into WICK, and the purchased WICK accrues to sWICK holders pro rata, raising the WICK value each sWICK represents.

From the moment you stake, your sWICK accrues bought-back WICK and unlocks holder perks like Lighter premium fee discounts and wLLP deposit access. Holders can later exit back to WICK through either delayed full redemption or instant discounted exit.

Revenue comes from several independent product lines: swap fees from Wick liquidity pools, a 10% protocol fee on wLLP insurance-fund yield, wLIT staking protocol fees, and Wick arbitrage profits captured 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 pooled Liquid Staking does three things at once: it backs wLLP capacity, it earns discounts on Lighter Core's premium-account trading fees, and it improves execution latency. The fee discounts and lower latency make Wick arbitrage against the Lighter orderbook cheaper and faster to execute. Standard Lighter accounts already trade at 0%; the discounts apply to the premium tier that traders choose for faster execution.

Those fee discounts, earned by the staked-LIT position, go to Wick's arbitrage accounts and to sWICK holders. A sWICK holder claims theirs by linking an EVM wallet on Lighter Core; Wick assigns discounts to linked addresses using Lighter's fee discount transfers, a Lighter feature currently in development. For premium-account traders, holding sWICK is simply the way to trade Lighter at a discount.

Fee discount transfers also let outside parties, such as external market makers, purchase discount access directly. That payment is protocol revenue, and it 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).

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 can be adjusted as market conditions evolve.