Lighter DEX aggressively positions itself as a platform that is the best for tokenized equity and commodities trading.
On the 13th of April, the Ethereum-based perpetual DEX unveiled a ‘liquidity partner program’ that rewards those who contribute liquidity to the platform’s RWA (real-world asset) tokenized markets. The program rewards market makers with up to $250K per week to help ensure sufficient liquidity and depth to execute RWA transactions.
Those offering liquidity for gold and silver, as well as those who are supporting top companies like NVDA Tesla and Circle’s CRCL, will be rewarded the most.
Hyperliquid currently has 1000% more liquidity for RWA than Lighter. Hyperliquid is better for traders who want smoother executions of trades with fewer slippages.
This divergence may attract traders from Hyperliquid to other venues that offer liquid RWA markets. The current RWA trading volume as a percentage of the total market supports this argument.
RWA trading: Lighter or Hyperliquid?
RWA has seen a boom in the markets, particularly those that deal with oil, silver, and gold.
These non-crypto assets accounted for nearly 40% of the overall Hyperliquid volume. 60% retention rate. Hyperliquid’s RWA has grown since March. This is a strong indication of the market’s adoption.
Lighter’s activity for non-cryptoassets, namely commodities, stagnated around 16 % over a period of time.
The liquidity program is yet to prove whether it will increase the overall trading volume and demand for Lighter RWA markets.
Impact of capital inflows on LIT prices
The capital inflows can also be used to measure Lighter’s popularity and its native token LIT. Capital outflows on the DEX in March totaled over $350m, which reflects a slowdown in trading.
It has however seen relief flows of more than $7 million in the last 2 weeks. This was interestingly timed to coincide with the Telegram integration The aggressive Buyback program.
LIT experienced a surge of 40% during the capital inflow period and recovered $1. As of the time this article was published, the price of LIT was still higher than $1 despite recent declines.
Bulls could target $1.3 if the psychological level is maintained for the next couple of days. This would offer a 30% potential gain on retest. A crack under $1 will energise bears.
Final summary
- Lighter announced a $250K incentive per week for its market-makers to increase the liquidity in their RWA market
- LIT held above the psychological $1 level could provide a potential 30% gain, if that psychological level was defended.
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Source: ambcrypto.com
