$250M Exits Lighter After $675M LIT Airdrop as Yield Farmers Rebalance

Onchain analytics firm Bubblemaps revealed that approximately $250 million was withdrawn from decentralized perpetual exchange Lighter shortly after it completed a massive airdrop of $675 million worth of its native token, LIT, earlier this week. The data sparked discussion across the crypto community about whether yield farmers were rapidly exiting the platform following the token generation event (TGE).

According to Bubblemaps’ analysis shared on X, around $201.9 million was withdrawn on the Ethereum blockchain, while an additional $52.2 million exited via Arbitrum. Nicolas Vaiman, CEO of Bubblemaps, told CoinDesk that these withdrawals account for roughly 20% of Lighter’s total value locked (TVL), which currently stands at about $1.4 billion based on DeFiLlama data.

Despite the scale of the outflows, Vaiman emphasized that this behavior is relatively common after large airdrops. He explained that users often rebalance hedging positions or move capital to pursue new yield farming opportunities once incentives have been realized. Similar post-airdrop capital movements were observed following token launches from platforms such as Hyperliquid and Aster, and Vaiman suggested the same pattern is likely to repeat with future airdrops, including those from PERP DEX, Paradex, and Extended.

CertiK senior blockchain security researcher Natalie Newson echoed this sentiment, noting that large withdrawals after TGEs are typically driven by airdrop farmers and early participants taking profits. She added that the lack of transparency around token distribution can create an environment where insiders capture outsized gains shortly after launch, a dynamic seen across many DeFi token releases.

Leading up to the LIT airdrop, trading activity on Lighter remained strong, with monthly volumes ranging between $8 billion and $15 billion throughout November. However, DeFiLlama data shows that trading volume has since declined sharply, dropping to around $2 billion in recent days. The LIT token price has also been under pressure, falling nearly 23% since December 30, from $3.37 to approximately $2.57.

While the post-airdrop dip in TVL, volume, and price may concern some observers, industry experts largely view the move as part of a familiar cycle in decentralized finance rather than a sign of deeper structural issues for the Lighter protocol.