diff --git a/observer/bin/dry-run.js b/observer/bin/dry-run.js
index a1a15fc..fa862be 100644
--- a/observer/bin/dry-run.js
+++ b/observer/bin/dry-run.js
@@ -20,4 +20,4 @@ await Promise.all([
   observeScheduledRewards(pgPools, ieContract)
 ])
 
-await pgPools.end()
+await pgPools.stats.end()
diff --git a/observer/lib/observer.js b/observer/lib/observer.js
index 26bbf69..b654cfb 100644
--- a/observer/lib/observer.js
+++ b/observer/lib/observer.js
@@ -9,9 +9,9 @@ import * as Sentry from '@sentry/node'
  */
 export const observeTransferEvents = async (pgPoolStats, ieContract, provider) => {
   const { rows } = await pgPoolStats.query(
-    'SELECT MAX(last_checked_block) FROM daily_reward_transfers'
+    'SELECT MAX(last_checked_block) AS last_checked_block FROM daily_reward_transfers'
   )
-  let queryFromBlock = rows[0].last_checked_block
+  let queryFromBlock = rows[0].last_checked_block + 1
   const currentBlockNumber = await provider.getBlockNumber()
 
   if (!queryFromBlock || queryFromBlock < currentBlockNumber - 1900) {
@@ -31,6 +31,8 @@ export const observeTransferEvents = async (pgPoolStats, ieContract, provider) =
     console.log('Transfer event:', transferEvent)
     await updateDailyTransferStats(pgPoolStats, transferEvent, currentBlockNumber)
   }
+
+  return events.length
 }
 
 /**
diff --git a/observer/test/observer.test.js b/observer/test/observer.test.js
index 80c6c7e..b43ae6b 100644
--- a/observer/test/observer.test.js
+++ b/observer/test/observer.test.js
@@ -1,19 +1,132 @@
 import assert from 'node:assert'
-import { observeScheduledRewards } from '../lib/observer.js'
+import { beforeEach, describe, it } from 'mocha'
 import { getPgPools } from '@filecoin-station/spark-stats-db'
 import { givenDailyParticipants } from 'spark-evaluate/test/helpers/queries.js'
 
-const getDayAsISOString = d => d.toISOString().split('T')[0]
-const today = () => getDayAsISOString(new Date())
+import { observeTransferEvents, observeScheduledRewards } from '../lib/observer.js'
 
 describe('observer', () => {
-  describe('observeScheduledRewards', () => {
-    let pgPools
+  let pgPools
+  const getDayAsISOString = d => d.toISOString().split('T')[0]
+  const today = () => getDayAsISOString(new Date())
+
+  before(async () => {
+    pgPools = await getPgPools()
+  })
+
+  after(async () => {
+    await pgPools.end()
+  })
+
+  describe('observeTransferEvents', () => {
+    let ieContractMock
+    let providerMock
 
-    before(async () => {
-      pgPools = await getPgPools()
+    beforeEach(async () => {
+      await pgPools.stats.query('DELETE FROM daily_reward_transfers')
+
+      ieContractMock = {
+        filters: {
+          Transfer: () => 'TransferEventFilter'
+        },
+        queryFilter: async () => []
+      }
+      providerMock = {
+        getBlockNumber: async () => 2000
+      }
     })
 
+    it('should correctly observe and update transfer events', async () => {
+      ieContractMock.queryFilter = async (eventName, fromBlock) => {
+        const events = [
+          { args: { to: 'address1', amount: 100 }, blockNumber: 2000 },
+          { args: { to: 'address1', amount: 200 }, blockNumber: 2000 }
+        ]
+        return events.filter((event) => event.blockNumber >= fromBlock)
+      }
+
+      await observeTransferEvents(pgPools.stats, ieContractMock, providerMock)
+
+      const { rows } = await pgPools.stats.query(`
+        SELECT day::TEXT, to_address, amount, last_checked_block FROM daily_reward_transfers
+      `)
+      assert.strictEqual(rows.length, 1)
+      assert.deepStrictEqual(rows, [{
+        day: today(), to_address: 'address1', amount: '300', last_checked_block: 2000
+      }])
+    })
+
+    it('should handle multiple addresses in transfer events', async () => {
+      ieContractMock.queryFilter = async (eventName, fromBlock) => {
+        const events = [
+          { args: { to: 'address1', amount: 50 }, blockNumber: 2000 },
+          { args: { to: 'address2', amount: 150 }, blockNumber: 2000 }
+        ]
+        return events.filter((event) => event.blockNumber >= fromBlock)
+      }
+
+      await observeTransferEvents(pgPools.stats, ieContractMock, providerMock)
+
+      const { rows } = await pgPools.stats.query(`
+        SELECT day::TEXT, to_address, amount, last_checked_block FROM daily_reward_transfers
+        ORDER BY to_address
+      `)
+      assert.strictEqual(rows.length, 2)
+      assert.deepStrictEqual(rows, [
+        { day: today(), to_address: 'address1', amount: '50', last_checked_block: 2000 },
+        { day: today(), to_address: 'address2', amount: '150', last_checked_block: 2000 }
+      ])
+    })
+
+    it('should not duplicate transfer events', async () => {
+      ieContractMock.queryFilter = async (eventName, fromBlock) => {
+        const events = [
+          { args: { to: 'address1', amount: 50 }, blockNumber: 2000 },
+          { args: { to: 'address1', amount: 50 }, blockNumber: 2000 }
+        ]
+        return events.filter((event) => event.blockNumber >= fromBlock)
+      }
+
+      const numEvents1 = await observeTransferEvents(pgPools.stats, ieContractMock, providerMock)
+      assert.strictEqual(numEvents1, 2)
+
+      const numEvents2 = await observeTransferEvents(pgPools.stats, ieContractMock, providerMock)
+      assert.strictEqual(numEvents2, 0)
+
+      const { rows } = await pgPools.stats.query(`
+        SELECT day::TEXT, to_address, amount, last_checked_block FROM daily_reward_transfers
+      `)
+      assert.strictEqual(rows.length, 1)
+      assert.deepStrictEqual(rows, [{
+        day: today(), to_address: 'address1', amount: '100', last_checked_block: 2000
+      }])
+    })
+
+    it('should avoid querying too old blocks', async () => {
+      providerMock.getBlockNumber = async () => 2500
+      ieContractMock.queryFilter = async (eventName, fromBlock) => {
+        const events = [
+          { args: { to: 'address1', amount: 50 }, blockNumber: 400 },
+          { args: { to: 'address2', amount: 150 }, blockNumber: 400 },
+          { args: { to: 'address1', amount: 250 }, blockNumber: 2000 }
+        ]
+        return events.filter((event) => event.blockNumber >= fromBlock)
+      }
+
+      await observeTransferEvents(pgPools.stats, ieContractMock, providerMock)
+
+      const { rows } = await pgPools.stats.query(`
+        SELECT day::TEXT, to_address, amount, last_checked_block FROM daily_reward_transfers
+        ORDER BY to_address
+      `)
+      assert.strictEqual(rows.length, 1)
+      assert.deepStrictEqual(rows, [
+        { day: today(), to_address: 'address1', amount: '250', last_checked_block: 2500 }
+      ])
+    })
+  })
+
+  describe('observeScheduledRewards', () => {
     beforeEach(async () => {
       await pgPools.evaluate.query('DELETE FROM daily_participants')
       await pgPools.evaluate.query('DELETE FROM participants')