$USDC Transfers Skewed by Aerodrome Farming, Analysis Reveals

A new analysis by RyeBlocks has revealed that Aerodrome farming accounted for around 90% of the $121 billion in USDC transfers recorded on September 23. The analyst described the activity as 'inorganic farming' and estimated that it left about $12 billion outside of this category.

The study found that one-tick farming made up approximately 75% of the total USDC transfer volume since Aerodrome launched in August 2023. This type of farming involves liquidity providers using a narrow price range for a position, causing $USDC to move through pool contracts repeatedly, resulting in repeated transfer records.

Aerodrome is a decentralized exchange on the Base blockchain network developed by Coinbase. It uses a concentrated-liquidity design called Slipstream and rewards system that gives providers a reason to place funds in eligible pools.