Lithos Flywheel
Lithos is built around a feedback system where trading activity generates revenue that cycles back to participants. Fees, emissions, and incentives are tied together so that liquidity, governance, and demand for LITH reinforce one another.
Revenue Sources
Trading Fees
Every swap generates a fee.
Fees are distributed between liquidity providers, veLITH holders, and the protocol treasury.
Voting Incentives (Bribes)
Protocols deposit incentives into gauges to attract veLITH votes.
veLITH holders claim these incentives after each Epoch.
Ignition Program
A portion of protocol revenue is used to buy LITH on the open market.
Purchased tokens are redistributed to veLITH holders, adding a revenue-backed reward layer.
veNFT Holdings
The foundation maintains veLITH positions, earning revenue and participating in governance.
Flow of Value
LITH Emissions → Liquidity Providers Liquidity providers stake LP tokens in gauges and earn LITH emissions.
Liquidity → Trading Fees Liquidity improves trading conditions, driving volume and generating swap fees.
Trading Fees → Protocol Revenue A share of fees flows into the treasury and to veLITH voters.
Revenue → Ignition Program Revenue is used to buy LITH on the open market, reducing supply.
Buybacks → veLITH Holders Bought-back LITH is redistributed to lockers, rewarding governance participants.
veLITH Holders → Gauge Voting veLITH holders vote weekly to direct emissions, closing the loop and keeping incentives aligned with active pools.
Feedback Loops
Liquidity Loop: Emissions attract LPs → LPs provide liquidity → better trading conditions → more volume → more fees → stronger LP incentives.
Governance Loop: veLITH votes direct emissions → pools attract liquidity and bribes → veLITH voters earn more rewards → locking demand increases.
Ignition Loop: Revenue funds buybacks → bought-back LITH goes to veLITH holders → long-term lockers benefit → demand for governance grows.
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