FAQs
What is Light Finance? Light Finance is a multichain lending protocol designed to increase Bitcoin L2 earnings through innovative lending and leverage mechanisms, utilizing the Light stablecoin.
What problem does Light Finance address? Light Finance addresses the lack of tools for lending assets and using leverage through a stablecoin to boost profits on Bitcoin L2 platforms.
How does Light Finance's solution work? Users can lend their assets and mint Light stablecoin, using this leverage across Bitcoin L2s through various DeFi strategies to increase their earnings.
What is Photon and what role does it play in Light Finance? Photon is a governance token that captures earnings from Light Finance's revenue generators, with 35% allocated to the community. It aims to provide financial rewards and influence in governance.
How does the DAO transition affect Light Finance? Light Finance will transition into a decentralized autonomous organization (DAO), allowing the Bitcoin community to build upon and influence the protocol's future.
When is the Photon airdrop scheduled, and what are the key dates? The Photon airdrop is scheduled for Q3 2024, with more detailed information on vesting and cliffs to be released in May 2024.
How can users earn points for the Photon governance token? Users earn points by referring others, staking assets, and participating in community activities. These points can later be redeemed for Photon tokens and other rewards.
Are there any restrictions on unstaking assets from Light Finance? Yes, users cannot withdraw RBTC from the vault on Rootstock Mainnet before the Photon TGE to ensure maximum value for each Photon at launch.
What is the maximum token supply a single community member can earn? A community member can earn up to a maximum of 0.03% of the total Photon token supply, regardless of the points accumulated, to prevent whale manipulation.
What are Light Debt Positions (LDPs) and how do they contribute to Photon's value? LDPs allow users to pay a 2% stability fee for every collateral debt position, which contributes to Photon's value while also minting Light stablecoin.
What are Light Staking Pools (LSPs)? LSPs provide users with predictable returns through lending and liquidity provision across Bitcoin L2s, increasing the intrinsic value of Photon.
What are Light Yield Aggregators (LYAs) and their benefits? LYAs optimize returns for users seeking the highest yields, enhancing Photon's value through automated, complex strategies.
What makes Light Finance unique compared to other stablecoins? Light Finance uniquely leverages Bitcoin liquidity and shares earnings with the community through Photon, unlike other stablecoins that might not utilize such incentives.
How is community growth supported by Light Finance? With 35% of Photon distributed to the community, members' involvement is financially rewarded, aligning individual prosperity with ecosystem growth.
What is the significance of runes in Light Finance? Runes represent 33,333 pieces of land in ancient Kemet (today's Egypt), with more details to be disclosed in late May.
How can community members influence decisions within Light Finance? By holding Photon, members can participate in governance decisions that directly impact the profitability and development of the Bitcoin L2 ecosystem.
What are the extra rewards for early stakers? The first 1,000 stakers of at least 0.01 RBTC on the Rootstock Mainnet will receive an additional 20,000 points.
How does Light Finance ensure fair distribution and prevent centralization? The protocol caps the maximum token supply any individual can earn and ensures points are progressively dropped to early users, maintaining fair distribution.
What are the key mechanisms through which Light Finance generates revenue? Revenue is generated through LDPs, LSPs, and LYAs, funneling profits directly to Photon and enhancing its value for token holders.
How can new users get involved with Light Finance? New users can join the community by visiting Light Finance on platforms like Discord, staking their assets, and participating in community-driven activities for rewards and governance influence.
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