diff --git a/spectrum-offchain-lm/src/main.rs b/spectrum-offchain-lm/src/main.rs
index 8fb991d..b8beaba 100644
--- a/spectrum-offchain-lm/src/main.rs
+++ b/spectrum-offchain-lm/src/main.rs
@@ -1,7 +1,10 @@
+use std::collections::HashSet;
 use std::sync::{Arc, Once};
 
 use clap::{arg, Parser};
+use ergo_lib::ergo_chain_types::Digest32;
 use ergo_lib::ergotree_ir::chain::address::{AddressEncoder, NetworkPrefix};
+use ergo_lib::ergotree_ir::chain::token::TokenId;
 use futures::channel::mpsc;
 use futures::future::ready;
 use futures::stream::select_all;
@@ -41,6 +44,7 @@ use crate::data::bundle::IndexedStakingBundle;
 use crate::data::funding::{ExecutorWallet, FundingUpdate};
 use crate::data::pool::Pool;
 use crate::data::AsBox;
+use crate::data::PoolId;
 use crate::data::{
     order::{Order, OrderProto},
     OrderId,
@@ -147,9 +151,21 @@ async fn main() {
 
     let default_handler = NoopDefaultHandler;
 
+    // The following pool ids are from Spectrum test and production pools.
+    let blacklisted_entities = generate_pool_blacklist(&[
+        "f61da4f7d651fc7a1c1bb586c91ec1fcea1ef9611461fd437176c49d9db37bb2",
+        "8a82a413c451fec826c8d39e87b95b6104d7de30e5d883a3c5ba4236d44b5837",
+        "8d49ef70ab015d79cb9ab523adf3ccb0b7d05534c598e4ddf8acb8b2b420b463",
+        "1b3d37d78650dd8527fa02f8783d9b98490df3b464dd44af0e0593ceb4717702",
+        "af629d8e63d08a9770bc543f807bdb82dcda942d4e21d506771f975dc2b3fd3a",
+        "24e9f9a3e0aa89092d8690941900323dea2ee3603ca7368c0c35175259df6930",
+    ]);
     // pools
     let (pool_snd, pool_recv) = mpsc::unbounded::<Confirmed<StateUpdate<AsBox<Pool>>>>();
-    let pool_han = ConfirmedUpdateHandler::<_, AsBox<Pool>, _>::new(pool_snd, Arc::clone(&pools));
+
+    let pool_han =
+        ConfirmedUpdateHandler::<_, AsBox<Pool>, _>::new(pool_snd, Arc::clone(&pools), blacklisted_entities);
+
     let pool_update_stream = boxed(entity_tracking_stream(pool_recv, Arc::clone(&pools)));
 
     // bundles
@@ -265,3 +281,14 @@ struct AppArgs {
     #[arg(long, short)]
     log4rs_path: Option<String>,
 }
+
+fn generate_pool_blacklist(base16_encodings: &[&str]) -> HashSet<PoolId> {
+    base16_encodings
+        .iter()
+        .map(|encoding| {
+            PoolId::from(TokenId::from(
+                Digest32::try_from(String::from(*encoding)).unwrap(),
+            ))
+        })
+        .collect()
+}
diff --git a/spectrum-offchain/src/event_sink/handlers/entity.rs b/spectrum-offchain/src/event_sink/handlers/entity.rs
index f516a34..2c4e9fb 100644
--- a/spectrum-offchain/src/event_sink/handlers/entity.rs
+++ b/spectrum-offchain/src/event_sink/handlers/entity.rs
@@ -20,17 +20,31 @@ use crate::event_sink::handlers::types::TryFromBox;
 use crate::event_sink::types::EventHandler;
 use crate::event_source::data::LedgerTxEvent;
 
-pub struct ConfirmedUpdateHandler<TSink, TEntity, TRepo> {
+pub struct ConfirmedUpdateHandler<TSink, TEntity, TRepo>
+where
+    TEntity: OnChainEntity + TryFromBox + Clone,
+    TEntity::TEntityId: Clone,
+{
     pub topic: TSink,
     pub entities: Arc<Mutex<TRepo>>,
+    pub blacklisted_entities: HashSet<TEntity::TEntityId>,
     pub pd: PhantomData<TEntity>,
 }
 
-impl<TSink, TEntity, TRepo> ConfirmedUpdateHandler<TSink, TEntity, TRepo> {
-    pub fn new(topic: TSink, entities: Arc<Mutex<TRepo>>) -> Self {
+impl<TSink, TEntity, TRepo> ConfirmedUpdateHandler<TSink, TEntity, TRepo>
+where
+    TEntity: OnChainEntity + TryFromBox + Clone,
+    TEntity::TEntityId: Clone,
+{
+    pub fn new(
+        topic: TSink,
+        entities: Arc<Mutex<TRepo>>,
+        blacklisted_entities: HashSet<TEntity::TEntityId>,
+    ) -> Self {
         Self {
             topic,
             entities,
+            blacklisted_entities,
             pd: Default::default(),
         }
     }
@@ -38,6 +52,7 @@ impl<TSink, TEntity, TRepo> ConfirmedUpdateHandler<TSink, TEntity, TRepo> {
 
 async fn extract_transitions<TEntity, TRepo>(
     entities: Arc<Mutex<TRepo>>,
+    blacklisted_entities: &HashSet<TEntity::TEntityId>,
     tx: Transaction,
 ) -> Vec<EitherOrBoth<TEntity, TEntity>>
 where
@@ -52,18 +67,25 @@ where
         let entities = entities.lock().await;
         if entities.may_exist(state_id).await {
             if let Some(entity) = entities.get_state(state_id).await {
-                consumed_entities.insert(entity.get_self_ref(), entity);
+                let entity_id = entity.get_self_ref();
+                if !blacklisted_entities.contains(&entity_id) {
+                    consumed_entities.insert(entity_id, entity);
+                }
             }
         }
     }
     let mut created_entities = HashMap::<TEntity::TEntityId, TEntity>::new();
     for bx in &tx.outputs {
         if let Some(entity) = TEntity::try_from_box(bx.clone()) {
-            created_entities.insert(entity.get_self_ref(), entity);
+            let entity_id = entity.get_self_ref();
+            if !blacklisted_entities.contains(&entity_id) {
+                created_entities.insert(entity_id.clone(), entity);
+            }
         }
     }
     let consumed_keys = consumed_entities.keys().cloned().collect::<HashSet<_>>();
     let created_keys = created_entities.keys().cloned().collect::<HashSet<_>>();
+
     consumed_keys
         .union(&created_keys)
         .flat_map(|k| {
@@ -86,7 +108,9 @@ where
     async fn try_handle(&mut self, ev: LedgerTxEvent) -> Option<LedgerTxEvent> {
         let res = match ev {
             LedgerTxEvent::AppliedTx { tx, timestamp } => {
-                let transitions = extract_transitions(Arc::clone(&self.entities), tx.clone()).await;
+                let transitions =
+                    extract_transitions(Arc::clone(&self.entities), &self.blacklisted_entities, tx.clone())
+                        .await;
                 let num_transitions = transitions.len();
                 let is_success = num_transitions > 0;
                 for tr in transitions {
@@ -100,7 +124,9 @@ where
                 }
             }
             LedgerTxEvent::UnappliedTx(tx) => {
-                let transitions = extract_transitions(Arc::clone(&self.entities), tx.clone()).await;
+                let transitions =
+                    extract_transitions(Arc::clone(&self.entities), &self.blacklisted_entities, tx.clone())
+                        .await;
                 let num_transitions = transitions.len();
                 let is_success = num_transitions > 0;
                 for tr in transitions {
@@ -122,9 +148,14 @@ where
     }
 }
 
-pub struct UnconfirmedUpgradeHandler<TSink, TEntity, TRepo> {
+pub struct UnconfirmedUpgradeHandler<TSink, TEntity, TRepo>
+where
+    TEntity: OnChainEntity + TryFromBox + Clone,
+    TEntity::TEntityId: Clone,
+{
     pub topic: TSink,
     pub entities: Arc<Mutex<TRepo>>,
+    pub blacklisted_entities: HashSet<TEntity::TEntityId>,
     pub pd: PhantomData<TEntity>,
 }
 
@@ -140,7 +171,9 @@ where
     async fn try_handle(&mut self, ev: MempoolUpdate) -> Option<MempoolUpdate> {
         let res = match ev {
             MempoolUpdate::TxAccepted(tx) => {
-                let transitions = extract_transitions(Arc::clone(&self.entities), tx.clone()).await;
+                let transitions =
+                    extract_transitions(Arc::clone(&self.entities), &self.blacklisted_entities, tx.clone())
+                        .await;
                 let is_success = !transitions.is_empty();
                 for tr in transitions {
                     let _ = self.topic.feed(Unconfirmed(StateUpdate::Transition(tr))).await;
@@ -152,7 +185,9 @@ where
                 }
             }
             MempoolUpdate::TxWithdrawn(tx) => {
-                let transitions = extract_transitions(Arc::clone(&self.entities), tx.clone()).await;
+                let transitions =
+                    extract_transitions(Arc::clone(&self.entities), &self.blacklisted_entities, tx.clone())
+                        .await;
                 let is_success = !transitions.is_empty();
                 for tr in transitions {
                     let _ = self