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Solana on Base - Volume Analysis

Comprehensive analysis of trading volume patterns for the bridged SOL token on Base Network, distinguishing between organic trading and LP churning/wash trading activity.

Live Dashboard

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Executive Summary

Analysis of 2,000,000+ ERC-20 transfer transactions reveals that approximately 95.5% of SOL token volume on Base is generated by LP churning mechanisms, not organic trading activity.

Classification Volume (SOL) Percentage Address Count
LP Churning / Wash Trading 37,516,521 95.5% 86
Organic Trading 1,783,492 4.5% 6,750
Total Analyzed 39,300,013 100% 6,836

Key Findings

Primary Volume Farmer (Smart Contract)

Contract Address: 0x7c460d504c1600Fb8c030ff0D3b7E02BAb268309

Owner/Initiator: 0xF28C66a9dFA53eeaF4b25d280B294C8835E10EA9

This smart contract accounts for approximately 68% of all wash trading volume through systematic LP churning:

  • Mechanism: Repeatedly adds and removes liquidity from Aerodrome pools
  • Counterparties: Only 1 (the Aerodrome SOL/WETH pool)
  • Net Position: Near-zero despite millions in volume
  • Balance Ratio: 100% (deposits equal withdrawals)

Secondary Volume Farmer

Contract Address: 0xEcBE25D69f0Bc85C8Eb42AE9A3b9A212DCed96e6

Owner: 0x4160f36b829958555134b8249250925092509250


LP Churning Mechanism

Unlike traditional wash trading (buying and selling to oneself), these contracts exploit Aerodrome's liquidity incentive structure through repeated liquidity provision cycles:

The Cycle

  1. Add Liquidity: Deposit SOL + WETH into Aerodrome pool
  2. Receive LP Token: Get vAMM-SOL/WETH position token
  3. Stake LP Token: Deposit LP token in gauge for AERO emissions
  4. Remove Liquidity: Withdraw SOL + WETH from pool
  5. Repeat: Execute cycle thousands of times

Evidence Transaction

0xcd9ce7f02aa53c42f1627053f0e698a1dd1f6dd7480c816780c0b827d0002f4e

This transaction shows the contract receiving LP tokens as part of the liquidity provision cycle.

Why This Works

Each add/remove liquidity cycle:

  • Generates transfer events that count toward "volume"
  • May earn trading fees from pool activity
  • Earns AERO emissions when LP tokens are staked
  • Has minimal price impact due to immediate reversal

Reward Mechanisms

Aerodrome distributes rewards through multiple channels:

Reward Type Source Recipient
Trading Fees 0.3% per swap LP token holders
AERO Emissions Weekly distribution Gauge stakers
veAERO Vote-escrowed AERO Long-term lockers
Bribes Protocol incentives veAERO voters

Observed On-Chain Rewards

Based on transaction analysis, the primary volume farmer has received:

  • USDC: Trading fee distributions
  • AERO: Gauge emissions from staked LP
  • Gas Costs: Approximately $10-20 per hour of operation
  • Net Profit: Estimated $50-150 per hour

Classification Methodology

Wash Trading / LP Churning Criteria

An address is classified as wash trading if ALL conditions are met:

  1. Balance Ratio > 85% - Deposits and withdrawals are nearly equal
  2. Net Position < 15% - Minimal accumulation or distribution
  3. Counterparties < 10 - Interacts with very few addresses (typically 1-3 pools)
  4. Volume > 100 SOL - Meets minimum activity threshold
  5. Not Infrastructure - Excluded from known DEX routers, bridges, aggregators

Organic Trading Criteria

All addresses that:

  • Do not meet wash trading criteria
  • Are not classified as infrastructure
  • Have meaningful net position changes
  • Trade with diverse counterparties

Infrastructure Exclusions

The following address types are excluded from wash/organic classification:

  • Aerodrome Pool: 0xb30540172f1b37d1ee1d109e49f883e935e69219
  • DEX Routers and Aggregators
  • Bridge Contracts
  • Known Protocol Addresses

Technical Details

Data Source

  • API: Routescan API (Etherscan-compatible)
  • Network: Base (Chain ID: 8453)
  • Start Block: 38,699,339 (first SOL token transaction)

Token Contract

Key Contracts

Contract Address Description
SOL Token 0x311935cd80b76769bf2ecc9d8ab7635b2139cf82 Bridged Solana token
AERO Token 0x940181a94a35a4569e4529a3cdfb74e38fd98631 Aerodrome governance token
SOL/WETH Pool 0xb30540172f1b37d1ee1d109e49f883e935e69219 Aerodrome vAMM pool

Repository Structure

basescan/
├── dashboard_modern.html    # Interactive analysis dashboard
├── index.html               # Redirect to dashboard
├── dashboard_export.json    # Pre-computed analysis data
├── transactions.json        # Raw transaction data
├── analyzer.py              # Volume classification logic
├── routescan_fetcher.py     # Transaction fetching
├── robust_backfill_v2.py    # Historical data backfill
├── address_labeler.py       # Address classification
├── update_dashboard.py      # Dashboard data updater
└── auto_sync_github.py      # Automated GitHub sync

Deployment

The dashboard is deployed as a static site on Vercel:

  1. Repository connected to Vercel
  2. Automatic deployments on push to main
  3. No build step required (static HTML/CSS/JS)

Resources

Primary Documentation

Resource Description
Aerodrome Finance Docs Official Aerodrome protocol documentation
Aerodrome Contracts Contract addresses and ABIs
Base Network Docs Base L2 documentation
Routescan API API used for transaction data

DEX Pool Resources

Protocol Resource
Aerodrome Pool Explorer
Uniswap V3 Base Deployments
PancakeSwap V3 Contracts

Aggregator Documentation

Protocol Resource
1inch Contract Addresses
0x Protocol Cheat Sheet
Odos Contract Addresses
Paraswap Smart Contracts

Bridge Documentation

Protocol Resource
LayerZero V2 Contracts
Across Contract Addresses

Data Verification Links

Contract Basescan Link
SOL Token 0x311935cd80b76769bf2ecc9d8ab7635b2139cf82
AERO Token 0x940181a94a35a4569e4529a3cdfb74e38fd98631
Aerodrome SOL/WETH Pool 0xb30540172f1b37d1ee1d109e49f883e935e69219
Volume Farmer #1 0x7c460d504c1600fb8c030ff0d3b7e02bab268309
Volume Farmer #2 0xecbe25d69f0bc85c8eb42ae9a3b9a212dced96e6

Analytics


License

MIT License - See LICENSE for details.


Analysis by ConejoCapital

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