$40M lifeline? Why Circle-Lighter’s revenue-sharing deal could reignite LIT
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Lighter [LIT] perpetual DEX has reportedly reached a revenue-sharing deal 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 fetch $30-$40 million in annual revenue, according to projections by Ryan Watkins, co-founder of crypto VC firm Syncracy Capital. Watkins added, “The reason why this is exciting is not because it will directly lead to more buybacks (it will indirectly). It’s a subsidy for traders who will now pay less funding on positions. Should increase open interest.” Potential impact on Lighter Since the end of the second phase of farming in late 2025, Lighter’s airdrop farmers have declined, derailing perpetual volumes and Open Interest (OI). According to DeFiLlama, the DEX’s weekly perp volumes dropped from about $300 billion in November 2025 to below $50 billion in February 2026 – A 6x decline in the past two months. With slow growth, monthly revenue also fell by nearly 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 more pressure on its revenue stream. Source: DeFiLlama Since it also runs buybacks like Hyperliquid, the said revenue-sharing deal could help bolster token accruals and trading fee rebates. For the unfamiliar, Circle earns interest income on the USDC reserves invested in U.S. Treasury bonds. For USDC circulating on Coinbase, the exchange nets 100% of the interest income on USDC reserves. Additionally, it captures 50% of the USDC’s income outside its platform, with the deal reportedly generating Coinbase over $900 million in 2024 alone. Other platforms have pushed to capture similar revenue streams or opt for their in-house stablecoin and keep all interest income. This is what…
Filed under: News - @ February 13, 2026 7:30 pm