Lighter: The Next MYX, Aster, or Avantis? | Perp DEX You Can’t Ignore!

A decentralized approach helps, but it doesn't guarantee protection from the regulator. [Music] >> Decentralized perpetuals and derivatives. This category in crypto has been so hot. I don't know how you could not know about it. Projects like Myx, Avantis, Aster, and Aivo or Aevo is the ticker have just absolutely pumped to the moon for a lot of people who got in early. So, I bring to your attention another project. This is Lighter, a decentralized exchange for perpetual futures that claims it can match centralized exchanges and speed while everything non-custodial and verifiable. In this video, we're going to cover what lighter is, how it works, who's behind it, what makes it different, and the risk you should know about, and whether it could be the next big thing in DeFi. There's a lot of things about this to unpack. 61,000 followers

and their pin post has 251,000 impressions. And what does it say? Lighter private beta ending soon. So this project is in a private beta right now. So this thing is really not fully rolled out. It's very invite only. It's being called a revolutionary perpetual deck. Those contracts that let traders long and short assets with leverage. Instead of running on a centralized server like Binance and Bybit, it uses its own applications specific ZK rollup called ZK lighter. And that means that every trade, every liquidation, every matching decision is backed by cryptographic zero knowledge proofs. The goal, you might ask, to give the users the speed of decentralized exchanges, but with the trustlessness of DeFi. Now, let's talk tech. At the core of Lighter is a ZK rollup architecture. Here's how it works. So, it has a sequencer that batches trades

in transactions, a prover that generates cryptographic proofs that every trade and liquidation was processed fairly and correctly, and smart contracts on Ethereum verify those proofs. They also have built what's called an exit hatch. So, if the sequencer or system goes down, users can still withdraw funds directly from Ethereum. Think of all the crashes we've seen with centralized exchanges. think FTX if you were still able to withdraw because it was built on say Ethereum that would have been amazing. So what makes Lighter stand out against the pack of all of these different projects that are doing somewhat roughly the same thing and to the average eye most people might not be able to tell it apart. So verifiable fairness in order matching and liquidations, no hidden manipulation behind the scenes. They are claiming high throughput and low latency aiming to

attract serious traders and even algrimarithmic strategies. Non-custodial safety. This is very important. I feel you hold your own funds until they are in position. Unlike leaving assets on a centralized exchange points program, Lighter runs leaderboards and rewards for active traders or users, liquidators, and liquidity providers. These points may turn into airdrops or token rewards later on. So, we were talking about the fact that they might have a token coming out at some point, and we're going to get more to that in the end of this video. Liquidity Vault users can provide liquidity and potentially earn yields from trading activity. That's pretty cool. So, who's behind Lighter? Vladimir Novakovski is the founder/CEO. I may be saying that wrong, so I'll go ahead and put his name on the screen. His background is in Citadel, Silicone Valley Startups. AI fintech pivoted

to crypto around 2022. Much of the original AI fintech team pivoted with him to build lighter. Investors supported this pivot, signaling strong early backer confidence. Of course, nothing in crypto is without risk, and I'm not a financial advisor. You should always do your own research and not do what somebody on YouTube tells you to do. Red flags and concerns. So, regulatory risk, perpetual futures are heavily regulated in the United States and in other regions. Of course, a decentralized approach helps, but it doesn't guarantee protection from the regulator. Liquidity risks. Since this is in a private beta, actual liquidity might be low compared to major exchanges. You have security risk. Even though ZK circuits are audited, there were findings about randomness issues and proof of generation. Audits reduce risk but do not eliminate it. Centralization of sequencer. Until there's a

decentralized sequencer network, one party could still have influence. Token uncertainty. Right now, the details of a public token, supply, unlock, listings, basically tokconomics are very unclear. So, you can't just ape in without knowing what you're buying. And as of right now, you can't even really ape in over here on this aiinvest.com/news. So, it's a news article. It says lighter, and this is the summary they give us, right? Lighter airdrop points are trading at $33 each via over-the-counter deals. So, they're already selling these points over the counter in anticipation for an airdrop, right? Transactions reaching as high as 363,000 is driven by its 2 to4 billion fully diluted valuation projection. So, they are already speculating that this thing will be worth over two billion, but somewhere between 2 and 4 billion when they launch a token. So the platform challenges

Hyperlid by using ZK lighter rollups for five millisecond finality and LLP positions as margin. Contrasting Hyperlid's 10 billion fully diluted valuation and 73% market share. So, Lighter's zero fee model and dynamic point system with weekly settlements aims to democratize DeFi trading while mitigating MEV risk through centralized order books. Poly market already predicts 47% chance of lighter exceeding 2 billion fully diluted value post token launch, positioning it as a disruptive force in the decentralized perpetual tradings category. The big question is whether they can scale liquidity, handle regulation challenges, and get mainstream adoption. For now, it's worth keeping on your radar because, you know, underground crypto, we're always trying to put things on your radar and raise your crypto IQ, especially if you're interested in derivative ZK tech or the early airdrop opportunities. I know that a lot of people are

chasing the next Myx or the next Aster, and this could potentially be one. So, we're looking out to see when is this token gonna come out. In the next video about lighter, we're going to talk about an interview that was done with the creator of the project. Like, share, subscribe, hit the bell notification so you don't miss any of the videos that I'm going to put out around this topic and many other topics in crypto. [Music]