Solend, a loan service protocol built on top of Solana, has proposed to access one of the whale’s accounts without the wallet owner’s permission to avoid liquidity.
This is a big problem for the protocol as ‘decentralized’ while the actions taken show that they are a ‘centralized’ platform.
In this case, there was a whale who had deposited $ 170 million on Solana and taken out a $ 108 million loan.
If Solana’s price drops to $ 22.30, the whale’s account risks being liquidated up to 20% of their loan ($ 21 million).
If that happens, it will have a very bad impact on the platform, Solana’s ‘Decentralized Finance’ (DeFi) ecosystem and also SOL prices.
To prevent that from happening, Solend launched the proposal ‘SLND1: Reduce Risk From Whales’, on Sunday and the vote closed with 97%approval.
Even so, the SOL price remained intact by rising to around $ 34 after the vote was made, prompting Solend to run another vote to overturn the proposal and it has garnered up to 99.8%of the vote.
Although the motion was overturned, Solend’s reputation was tarnished and drew public criticism because the action showed they actually had the controlling power to do so.
At the time of writing, Solana is trading positive at $ 37 after rising around 4.9% today, in line with the recovery of the crypto king Bitcoin (BTC) which surged at $ 21,150.
