How Protocol Makes Money

Light Finance generates revenue through 3 different mechanisms that funnel profits to Photon: Light Debt Positions (LDPs): Users pay a 2 percent stability fee for every collateral debt position created on the protocol while also lending their assets. This stability fee is channeled to Photon's value while also minting Light stablecoin. Users can use leverage by repurchasing collateral in our vaults to increase exposure, more information on this later in May.

Light Staking Pools (LSPs): Users can receive predictable returns through lending and providing liquidity to decentralized exchanges across Bitcoin L2s. These rewards are funneled to Photon's value.

Light Yield Aggregators (LYAs): Users seeking the highest yield can use Light aggregators to optimize returns. Participation in these aggregators boosts the value of Photon with no effort from the end user since all of the complexity is extracted away.

Summary Users can enjoy the liquidity from major Bitcoin L2s while also leveraging their positions to increase their earning from our user interface. Earnings from the protocol goes to Photon's value. More information on this later in May.