Lighter CEO Unveils Path to CEX-Level Performance Through Custom Layer 2 Rollup and Zero-Knowledge Circuits

Lighter, a decentralized exchange (DEX) leveraging an innovative custom Layer 2 (L2) rollup architecture, has swiftly achieved remarkable success as the world’s second-largest perpetual futures DEX by open interest—despite operating within a private beta. In an exclusive interview with Blockmedia on September 24, CEO Vladimir Novakovski highlighted Lighter’s revolutionary use of tailored L2 infrastructure and zero-knowledge (ZK) circuits to deliver performance and efficiency rivaling centralized exchanges (CEX).

“Generic L2 solutions often fall short in achieving CEX-like efficiency,” Novakovski explained. “At Lighter, we’ve developed a custom L2 rollup optimized for trading purposes, enabling on-chain operations to match CEX-level speed and cost effectiveness.”

A former Citadel trader, Novakovski emphasized that Lighter’s ZK circuits focus solely on verifying trading constraints, resulting in operations that are 100 times cheaper and 10 times faster compared to conventional L2 implementations. These technological breakthroughs, combined with an unwavering focus on user experience, have solidified Lighter’s position as a leader in the DEX space.

Rapid Growth: Precision Focus Pays Off

Despite being in private beta, Lighter has experienced exponential growth since its launch. Starting with 100 users earlier in the year, the platform now boasts over 125,000 users—a milestone achieved entirely through an invite-only model without any marketing campaigns. Novakovski attributed this growth to the company’s dedication to technological innovation and customer satisfaction.

“We prioritize open interest as the key metric for demonstrating product-market fit in the DEX arena,” Novakovski stated. “By this measure, Lighter has cemented its position as the second-largest perpetual futures DEX globally.”

Custom Layer 2 Rollup Optimized for High-Frequency Trading

Lighter’s custom-built L2 rollup stands out for its cutting-edge optimization tailored specifically to high-frequency trading (HFT). Generic L2 solutions often struggle to meet the demands of market makers and traders executing hundreds of trades per second. To address this gap, Lighter has innovated a “trading-only custom computer” powered by advanced ZK technology.

“Restricting ZK circuit constraints exclusively to transactions has allowed us to reduce costs by 100x and minimize latency by 10x compared to generic L2 architectures,” Novakovski noted. He also revealed that the team is actively exploring partnerships with zero-knowledge virtual machine (ZKVM) projects to broaden its ecosystem into areas like lending and prediction markets.

Mitigating Maximum Extractable Value (MEV) Exploits with Proprietary Sequencers

Lighter’s architecture includes a crucial feature: a proprietary private sequencer adhering strictly to the “First-In, First-Out” (FIFO) principle to combat maximum extractable value (MEV) exploitation. Novakovski elaborated that even in cases where the sequencer might falter, ZK circuits are programmed to reject invalid outcomes, ensuring transaction integrity.

“MEV opportunities are reduced to milliseconds—essentially imperceptible to users,” Novakovski said. “Further, by offering users the option to withdraw funds securely via Ethereum Layer 1 should the sequencer be compromised, we mitigate any risks of loss.”

Public Launch and Token Generation Event Approaching

In preparation for its public beta and Token Generation Event (TGE) slated for Q4, Lighter is finalizing technical evaluations while gearing up to introduce spot trading within the next 4–6 weeks. This launch will coincide with the debut of Lighter’s native token, which will feature thoughtfully designed tokenomics aimed at incentivizing genuine trading activity.

“Our tokenomics framework has been meticulously crafted to reward authentic trading behavior while enhancing the value proposition of our native token,” Novakovski explained.

Decentralized Exchange Market Growth and Lighter’s Future Roadmap

As decentralized exchange activity continues to rise, Novakovski observed that the growing adoption of DEXs likely reflects both CEX user migration and renewed interest in Web3 technologies. He highlighted that DEXs now present compelling advantages over CEXs, including lower fees, faster execution, and enhanced security.

“The shift towards DEXs is evident, although many users remain attached to CEXs due to familiarity or prior dissatisfaction with older DEX models,” Novakovski remarked. “Nevertheless, the tipping point for widespread adoption is fast approaching—if not this year, then certainly soon.”

Looking ahead, Lighter plans to implement universal cross-margining capabilities, allowing diverse collateral options ranging from Ethereum (ETH) to Bitcoin (BTC) and even real-world assets (RWA). Additionally, its roadmap includes expanding pre-launch markets and venturing into new areas like options trading and prediction markets.

A Message to the South Korean Community

Acknowledging Lighter’s early supporters, Novakovski extended special gratitude to the South Korean user base. Among its initial 100 beta users, 29 hailed from South Korea, with the community now growing exponentially.

“To our Korean community, thank you for your steadfast support,” Novakovski said. “As we transition to public launch, we hope you’ll introduce Lighter to friends and demonstrate how seamlessly a DEX can rival CEX efficiency. We look forward to deepening our partnership with the Korean market.”

Novakovski also advised users to focus on authentic trading strategies and cautioned against manipulative tactics, emphasizing that such actions could negatively impact their point rewards under Lighter’s incentive framework. Instead, he encouraged leveraging tools like hedging strategies to capitalize on Lighter’s optimized trading environment and cost advantages.

With its public debut on the horizon, Lighter stands poised to redefine decentralized trading, marrying cutting-edge technology with a user-centric approach. The industry eagerly anticipates how this innovative platform will influence the DEX landscape in the months to come.