Tokens (LITH, veLITH)

LITH — Native utility token of the protocol

LITH Utility

  • Liquidity Incentives: $LITH is distributed as emissions to attract liquidity providers on Lithos, provide optimal trading conditions for end users and drive revenue for Lithos.

  • Governance Decentralisation: Continuous $LITH emissions ensure that any party can permissionlessly acquire influence over Lithos's governance and revenue flows—supporting an open and dynamic ecosystem.

LITH — Cash-flow based token

Balancing weekly inflation with sustained locking demand helps preserve $LITH fair market value over time:

  1. $LITH weekly emissions attracts Liquidity Providers

  2. This liquidity generates organic trading fees and attracts external voting incentive deposits from partner protocols seeking deeper liquidity.

  3. To capture these revenue flows, $LITH must be locked into veLITH.

veLITH — ERC-721 governance token in the form of an NFT (non-fungible token)

veLITH is the vote-escrowed version of $LITH. Users can lock their $LITH tokens for up to 2 years to get veLITH. The longer the lock, the higher the amount of veLITH voting power received.

To encourage continuous relocking and sustained participation from stakeholders, the veLITH balance of users declines over time until it reaches zero at the conclusion of the initial locking period.

veLITH Utility

  • Protocol Revenue Access: veLITH holders can vote for gauges on a weekly basis, and access 90% of the trading fees generated by LPs who opt to receive $LITH emissions as well as 100% of the voting incentives deposited by partners on the associated pool.

  • Governance Participation: veLITH holders can partake in governance and cast votes for the protocol improvement proposals.

veLITH Specifications

  • ve(3,3) Concept: Combination of the anti-dilution rebase mechanism introduced by Olympus DAO and Curve's vote-escrowed model. The ve(3,3) concept was initiated by Andre Cronje in the original Solidly DEX.

  • Gauge: Smart contract that distributes token emissions ($LITH) to a specific liquidity pool based on votes cast by veLITH holders.

  • Voting Incentives: Custom amounts of tokens deposited by partners on a gauge to attract votes from veLITH holders.

  • Anti-Dilution Rebase: veLITH holders are protected from dilution through a weekly rebase: 30% of $LITH weekly emissions are distributed to veLITH holders, as an increase of their locked position (i.e. cannot be claimed before the unlock of the position).

  • Max Lock: 2 years.

  • Flexibility: veLITH positions can be increased, relocked, merged, split, and sold on the secondary market.

veLITH Voting Mechanisms

Voting operates on a weekly cycle, known as an Epoch, which resets every 7 days. At the end of each epoch, rewards are distributed exclusively to veLITH holders who voted for specific gauges (liquidity pools).

You only earn revenue from the pools you've actively voted on during that period:

  • Trading fees and voting incentives become claimable as a lump sum after the end of the Epoch.

  • Voting must be cast each epoch to remain eligible for reward. One-click "Revote" function is available.

  • All vote weights reset at the start of each new epoch; voting is required every epoch to maintain eligibility for rewards.

  • Votes can be modified or reset at any time.

Token Addresses

Token addresses will be published upon deployment to Plasma blockchain.

Lithos represents a focused approach to ve(3,3) tokenomics, prioritizing simplicity and effectiveness over complex token structures while maintaining the proven incentive alignment that makes the model successful.

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