Gate.io Blog Daily Flash | Solend Labs Revotes to Seize Whale Account With Big Margin Position In An Attempt to Prevent Crash

Daily Flash | Solend Labs Revotes to Seize Whale Account With Big Margin Position In An Attempt to Prevent Crash

21 June 10:08

Today's Headline - Solana Lending Platform ‘Solend’ Reconsiders ‘Takeover’ Of Whale Account

Solend, a DeFi lending protocol on Solana, voted overwhelmingly in favor of a proposal to mitigate risk imposed by a specific user with a big margin position on Solend.

The user in question accounts for around 95% of the SOL deposits on the platform and has borrowed around 88% of the USDC available on the platform. This means that users are unable to withdraw their USDC deposits and that the SOL if liquidated would be too large for the market to absorb, potentially leaving the platform with bad debt.

The proposal passed to remedy the situation grants Solend Labs "emergency powers" to “takeover” the whale account and liquidate its vulnerable assets (around $20 million in SOL) via over-the-counter (OTC) trades instead of decentralised exchanges. This move was met with friction from a majority of the wider DeFi community on Twitter.

Facing backlash, the community has now gone back to the ballot box with a second vote to decide on whether to invalidate the results of the first vote and extend the voting time by a day to work on a new plan minus ‘emergency powers.’

The crypto lending platform has been placed in a dilemma. If Solend were to take over the whale’s wallet and be granted emergency powers, it might save Solana from a DeFi implosion. However, it would show that anyone’s assets can be confiscated within the platform and could cause a boycott.

Chart of the Day - Breakdown of 2022 Crypto Venture Deals by Category: CryptoRank report

2022 has seen the largest crypto fundraising thus far. In nearly six months, the industry has raised more than $28B. Some of the most popular categories are Web3 and DeFi, while Blockchain Infrastructure and CeFi (Centralized Finance) lead in terms of raised amounts.

Influencer of the Day - Elon Musk’s Tweet On Dogecoin Pumps It by 8%

On Sunday, Elon Musk tweeted his support for Dogecoin after a class-action lawsuit was filed against him on Thursday claiming his actions involving Dogecoin constituted a Ponzi scheme. He also tweeted that he was buying Dogecoin in response to a comment urging him to keep buying it.

This was enough to send the meme coin pumping 14% to $0.0604.

Buzzes of Yesterday - #Proshares Launches Short ETF, #Christie's Web3 Advisor Leaves to Steward CryptoPunks

Bitcoin Investors Lose Record $7.3 Billion in Three Days

SBF And Alameda Step In To Prevent Crypto Collapse Contagion

ProShares Launches First ETF to Short Bitcoin

Christie’s Web3 Expert Leaves to Join Yuga Labs To Steward CryptoPunks

Tencent forms 'extended reality' unit as metaverse race gathers steam

Telegram’s Premium sub_script_ion is here and it costs $4.99 / month

Spanish Airline Giant Vueling Embraces Crypto as a Payment Method

Middle East-focused crypto firm BitOasis cuts jobs amid sector turmoil

Author: Gate.io Researcher Peter L.
This article represents only the views of the researcher and does not constitute any investment advice. Gate.io reserves all rights to this article.
Reposting the article will be permitted provided Gate.io is referenced.
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