The Solana (SOL) whale that was subjected to the potential takeover by a recent Solend governance vote has gotten in touch with the lending protocol and moved $25 million worth of USD Coin (USDC) debt to Mango Markets. 

In a tweet, Solend shared that the whale has acted on the team's suggestion to move their position across various lending protocols. The act reduces the utilization of USDC within Solend, allowing its users to withdraw their assets once more.

While the move seems like a band-aid solution to a bigger liquidation problem, the Solend team highlighted that they are working with the whale and the Mango team to create a more long-term solution to the underlying problem. 

Apart from this, the lending protocol has also passed another governance vote that will significantly lower the account borrow limit that's currently at $120 million USD to $50 million. Debt above the new limit set will be subject to liquidation no matter what their collateral value is.

The protocol has also reduced the amount that can be liquidated within one transaction by lowering its maximum liquidation close factor to 1%. It also lowered the liquidation penalty for Solana from 5% to 2%. Both reductions are temporary and may change once the whale situation has been dealt with.

On June 19, the Solend lending platform received criticisms for its SLND1 governance vote that aims to take over the whale's wallet to mitigate risks. The vote closed with a 97% approval rating. However, it received many criticisms as the move goes against the principles of decentralization.

Because of the negative feedback caused by the initial move, the lending platform decided to hold a second governance vote to invalidate SLND1. The second proposal was approved, gathering 1,480,264 votes in favor of disregarding the wallet takeover plan. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Recommended content


Recommended Content

Editors’ Picks

Ethereum ETFs flows data pour in after crossing $1 billion trading volume in first day of launch

Ethereum ETFs flows data pour in after crossing $1 billion trading volume in first day of launch

Ethereum ETFs have crossed the $1 billion mark in trading volume on the first day of launch. Investors won't substitute Ethereum for Bitcoin but would hold both, says Bitwise's Matt Hougan. Ethereum could replicate Bitcoin's price post-spot BTC ETF launch following recent price action.

More Ethereum News

Bitcoin Conference could host huge election showdown with Kamala Harris as potential speaker

Bitcoin Conference could host huge election showdown with Kamala Harris as potential speaker

Bitcoin Conference could be major price catalyst after reports that Vice President Kamala Harris may be one of the speakers. Donald Trump will speak on crypto regulations and a Bitcoin strategy at the conference. Kamala's camp has been asking questions about cryptocurrencies, claims Mark Cuban.

More Cryptocurrencies News

dYdX recovers compromised v3 platform hours after leaked sales attempt

dYdX recovers compromised v3 platform hours after leaked sales attempt

The dYdX team reported an attack on its DEX's version 3.0 platform on Tuesday. The breach came hours after a Bloomberg report revealed that the team could be planning to sell the v3 platform to intending buyers.

More dYdX News

Vitalik Buterin reveals new cryptographic protocol Circle STARKs

Vitalik Buterin reveals new cryptographic protocol Circle STARKs

Vitalik Buterin revealed a new blockchain protocol for enhancing efficiency, Circle STARKs. Circle STARKs will utilize smaller fields to improve speed and maintain security. Polygon Labs and StarkWare are major collaborators in building Circle STARKs for ZK rollups.

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP