With a recent wave of liquidations, the broader crypto loan and staking markets have been experiencing one of the worst crises in history. Solend, a “decentralized” lending platform based in Solana, launched an SNLD1 proposal on Sunday to take over a whale account with emergency powers in order to avoid a cascade of possible liquidations.
Solend alleged that a whale had opened a massive margin position. It threatens to liquidate 20% of their borrowing if the SOL price dropped below $22,30. This might create havoc and put a load on the Solana network.
However, given that it’s a “decentralized” protocol, this sparked outrage in the crypto community for its capacity to govern a whale account. The fascinating part was that Solend received 97.5 percent (1.15 million) of the vote.
The good news is that the crypto market is showing signs of recovery following the weekend slump. As of press time, Solana (SOL) has regained 6.5 percent and is trading above $32.05. This momentarily mitigates the possibility of the whale account at Solend being liquidated.
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