Lit Protocol: Executive Summary
What you need to know ahead of the $LITKEY token launch.
Contents
- Note from the Founders
- How to Work with Lit Protocol
- Crypto Users
- Automation / App / Agent Builders
- Wallets
- Product & Protocol Teams
- Blockchains / L2s
- Node Operators
- Progress So Far
- Token Generation Event (TGE)
- V1 Mainnet Launch
- veLITKEY
- Closing
Note from the Founders
Over the past five years, the insight behind Lit Protocol has stayed constant: secure key management is the foundational unlock for an internet that enables both maximal value creation and maximal sovereignty.
In the early years this seemed like a lofty goal and we weren’t sure whether our insistence on user control as a keystone in network design would resonate. We were often challenged on our decision to design a system where control was out of our hands at every layer.
But today, with 13 months of Lit v0 running in production, we’ve seen the proof: the dream of the original pioneers of the web and crypto is alive. An ecosystem of builders has emerged around Lit Protocol, delivering experiences that are both more powerful and protect users by being much more autonomous than their centralized counterparts.
We’re deeply grateful to everyone who has helped demonstrate the transformative power of cryptographically verifiable automation of authority, secrets, and access. While Lit Protocol provides advanced cryptography that’s easy to use, it's the builders and their passion that complete the picture here.
With the TGE approaching, the DKG launching, and the veLITKEY model coming, the opportunity to shape the next era of the web is here. There’s never been a better time to build that future together.
-Chris and David
How to Work with Lit Protocol
Lit Protocol is an automation and orchestration layer for all of crypto and the internet build with threshold cryptography, secure hardware, and a coordination blockchain . If you want to dive deep, explore how Lit Protocol works.
Depending on who you are, there are different ways to plug into the ecosystem and benefit from this primitive:
- Crypto Users – Use apps secured by Lit Protocol, like Vincent Yield.
- Automation / App / Agent Builders – Build non-custodial automations that work with user deposits
- Wallets - Turn your interface into a financial app store, starting with yield optimization
- Product & Protocol Teams – Add automation, privacy, and interoperability to your offering
- Blockchains / L2s – Run the Lit Protocol on your own nodes to enable native intents
- Node Operators – Help secure the network
Crypto Users
Vincent is the primary gateway for automated cross-chain DeFi and where end users can go to see the power of Lit Protocol in action. See all the live Vincent apps and dive into the ecosystem of products built with Lit Protocol.
Automation / App / Agent Builders
In the next 20 minutes, you can spin up a app to let users securely delegate the use of their assets to you, within oAuth guardrails for smart contracts with permissions all onchain and enforced with Lit Protocol. This service is provided by the Vincent platform, running on Lit Protocol. Dive into the docs.
Wallets
If you’ve built an EOA or smart account wallet and are ready to evolve your app into an crypto neobank with automation at as core part of your platform where users can securely and non-custodially enroll in yield optimization, rebalancing baskets of tokens, and any other DeFi action that currently requires a human in the loop, get in touch to get started.
Product & Protocol Teams
Lit Protocol is a base layer network offering fully programmable signing and encryption, so if the tooling for automation with Vincent doesn’t suit your use-case, you can build nearly any service on Lit Protocol directly. These use cases include, but are not limited to:
- All methods of crosschain interaction (e.g. liquidity mgmt, vaults)
- BitcoinFi with Lit enabled smart accounts managing BTC on Bitcoin
- Crosschain infrastructure for stable coin issuers
- Privacy for transactions
- Privacy for data
- Backup and recovery
- Using Lit as an HSM to secure your private system
- Treasury management
- Everything else you can use signing and encryption for
Started building on the V1 network here and ask questions in the Lit Builders Circle.
Blockchains / L2s
Leverage our years of work to give your chain the ability to read and write from any other blockchain or system by creating an Lit Protocol powered node type within your network, powered by MPC TSS running in TEE, all orchestrated on onchain.
If you’re ready to explore how your chain becomes a hub for interaction across all chains, including Bitcoin? Reach out.
Node Operators
Node operators are the backbone of Lit Protocol’s network. Interested operators can apply to help secure the network and earn a share of network rewards.
The genesis validator set for the launch of the upcoming Lit v1 Mainnet will be selected via a staking contest. To learn more about the requirements and to whitelist your node for the contest, check out the node operator docs.
Progress So Far
Lit Protocol’s v0 Mainnet Beta, Datil, was launched in October 2024 and is currently supporting hundreds of teams using Lit to secure signing, encryption, and compute operations.
Check out Lit V0's onchain progress via Dune:
- Securing $400m+ in digital assets across Bitcoin, Ethereum, Base, Solana, Avalanche, and beyond.
- Managing over 1.6m decentralized wallets and signers.
- Processing more than 34M+ total signing and encryption requests since inception.
- Powering hundreds of applications and builders across DeFi, Chain Abstraction, AI Agents, Digital Identity, Verifiable Data, and beyond.
- Supporting more than 10,000 daily active users and facilitating tens of millions of cryptographic operations on a monthly basis.
Lit V1 Testnet is live and ready for mainnet launch, proceeding the TGE.
Token Generation Event (TGE)
The soon to be liquid $LITKEY token underpins the entire Lit Protocol ecosystem. In the coming days, the timing details around the Community Launch on Aerodrome will be published, the second token to launch with this method. If you’re a veAero holder, stay tuned to this blog, X, and the #pilots-lounge and vote for the $LITKEY pool in the epoch ahead of trading!
V1 Mainnet Launch
After the TGE, the Lit Protocol V1 Mainnet, “Naga” (all Lit networks are named after peppers 🌶️), will launch with the initial Distributed Key Generation carried out by the genesis validator set which will be selected via a staking contest. The Lit V1 Testnet is live.
If you’re ready to compete for a node operator position, dive into the docs here. Token holders can stake their tokens to earn yield while delegating their stake to prospective node operators as part of the staking content.
veLITKEY for Community Acceleration and Sovereign Economic Development
After the launch of Lit v1, the LITKEY token model will take its next evolutionary step into the veLITKEY model, an emission and voting framework that permanently protocol rewards to verified network revenue, in addition to node operator selection.
The model for veLITKEY takes the best features of the (3,3) model and merges them with retroactive public goods funding. The comment period for this model is happening now on the Lit Protocol governance forum.
The goal of this model is to transform Lit Protocol from a network into a network state with the understanding that keys which are decentralized and programmable provide sovereignty to users as its “One Commandment”.
Closing
Lit enables automation without surrender and privacy without compromise.
It’s the foundation for a world where agents, applications, and users act with cryptographic autonomy.
Whether you’re building, securing, or simply using this new layer of the internet, Lit makes it possible to do so with trust in math, not intermediaries.
The future of the web is sovereign, programmable, and being unlocked with Lit keys 🔑