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Lighthouse Exchange is looking to become the next central marketplace for liquidity on the BNB chain. Bringing together various projects to create a positive feedback loop for all parties involved.

Lighthouse Protocol: Simplifying Token Swaps with Liquidity Incentives

The Lighthouse protocol streamlines token swapping by incentivizing liquidity provision. Here's a straightforward breakdown of how it works:

  1. Attracting Liquidity: The protocol draws in liquidity, essential for smooth token swaps (refer to the diagram below for a simplified view).

  2. Rewarding Liquidity Providers: Those who supply liquidity, known as Liquidity Providers (LPs), are rewarded with LIGHT tokens. These tokens are generated by the Minter.

  3. Distribution Based on Votes: The distribution of LIGHT tokens to various liquidity pools is determined by votes. These votes are cast weekly by Voters.

  4. Staking for Rewards: To be eligible for LIGHT token rewards, Liquidity Providers must stake their deposited liquidity in a Gauge.

  5. Voting Power for LIGHT Holders: If you hold LIGHT tokens, you have the option to lock them. Doing so grants you the power to vote on how the LIGHT token emissions are distributed across pools.

This structure not only makes token swapping more efficient but also actively rewards participation and investment in the ecosystem.

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