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Solana-Based Solend Revert Backs Its Move As SOL Surges By Double-digit Gains!

20 Jun, 20222 min readOther
Solana-Based Solend Revert Backs Its Move As SOL Surges By Double-digit Gains!

The folks from the digital market have been witnessing torrential shocks coming from all directions. While the tremors of the crisis are yet to subside. The news of Solana-based Solend taking control of a whale account has stunned the industry. The recent crash has left multiple projects and companies in ruins. And the makers of the projects have been striving to gather momentum.

Successively, in an attempt to restore traction, Solend had made a proposal to take control of a whale account. However, as a result of heavy criticism, the SLND1 gets invalid. But marketers have been expressing concerns over the decisions of the market makers. Buckle up as the write-up takes you through the ins and outs of the proposal.

Will This Cycle Put An End To Decentralization?

As aforesaid, Solend Labs, a decentralised lending and borrowing protocol built on Solana. Had made a proposal to take control of a whale account, that held deposits of 5.7 M SOL. And had borrowed more than $108 M in stablecoins. The big money account holds more than 95% of the margin pool deposits and 88% of the USDC borrowing pool.

The crucial step was in light of the extremely large margin positions. Which were posing a threat to an on-chain liquidation. The gigantic holding of the whale has been causing a threat to the protocol and its users. That said, the initiative was taken following repetitive attempts of reaching the whale and it being unresponsive.

However, the initiative is now withdrawn following industry-wide criticism, with a new proposal SLND2. The new proposal brought-in 99.8% votes in favour of the withdrawal. With this, the SLND1 proposal gets officially invalid. The reversal in the decision was also supplemented by the interim relief in the market, by which SOL price rose with double-digit gains.

Collectively, although the move is taken back, marketers are expressing concerns about decentralisation. Which has been the core principle of cryptocurrencies, and DeFis in particular. Partisans of the industry are now pointing at the setbacks of PoS chains in comparison to PoW chains. That said, normalcy in the business is probably the need of the hour.

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