Outflows from decentralized exchange Lighter following its recent LIT token airdrop are not unusual, according to Bubblemaps CEO Nicolas Vaiman, as users rebalance positions and seek new yield opportunities.
On-chain data from Bubblemaps showed roughly $250 million withdrawn after Lighter distributed $675 million worth of LIT on Tuesday. About $201.9 million was pulled from Ethereum and $52.2 million from Arbitrum, prompting Bubblemaps to ask whether “all the (yield) farmers were leaving.”
Vaiman told CoinDesk the withdrawals represent roughly 20% of Lighter’s total value locked (TVL) of $1.4 billion. He noted similar patterns occurred after previous token launches like Hyperliquid and Aster and expects similar outflows with future airdrops, including PERP DEX and Paradex Extended.
CertiK researcher Natalie Newson added that large withdrawals after token generation events (TGEs) are typically driven by early participants and airdrop farmers. “Without transparency in token distributions, a few insiders can capture outsized gains shortly after launch,” she said.
Prior to the airdrop, LIT trading volume ranged between $8 billion and $15 billion in November but recently fell to around $2 billion, while the token’s price dropped nearly 23% since Dec. 30, from $3.37 to roughly $2.57.
