On-chain data monitoring shows that the Lighter protocol recently withdrew approximately 32.05 million USDC from the treasury, raising concerns about the specific flow of these funds.

According to the data, the funds were allocated to multiple destinations. About 8.6 million USDC were re-deposited into the protocol after October 16, while approximately 7.5 million USDC were invested into the LLP liquidity pool to reward LLP holders—however, the specific use of this portion of the funds has not been publicly disclosed before, nor has it been documented, accounting for about a quarter of the total revenue.

Most notably, the remaining approximately 21.9 million USDC were transferred to a wallet address of a compliant platform. Additionally, about 100,000 USDC remain in the project fee wallet.

This large-scale fund operation has brought transparency issues regarding the destination of the funds to the forefront. How the project team explains the specific usage of these funds moving forward will directly impact the community’s confidence in the Lighter protocol.