Solend invalidates Solana whale wallet takeover plan with second governance vote

Solend invalidates Solana whale wallet takeover plan with second governance vote


Solana-based decentralized finance (DeFi) lending protocol Solend has created another governance vote to invalidate the recently-approved proposal that gives Solend Labs “emergency powers” to access a whale’s wallet to avoid liquidation. 

On Sunday, the crypto lending platform launched a governance vote titled “SLND1 : Mitigate Risk From Whale.” This allows Solend to reduce the risk that the whale’s liquidation poses to the market by letting the lending platform access the whale’s wallet and letting the liquidations happen over-the-counter (OTC).

According to Solend, if Solana (SOL) drops in price and the whale gets liquidated, the lending platform may “end up with bad debt” and strain the Solana network. The proposal was approved, triggering criticism from members of the community.

Trending: Thousands Of Flights Cancelled As Pilots Strike Before 4th Of July

As the community condemned the move, calling it

Continue reading


 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Thanks for sharing!
Send this to a friend