A crypto lending app tried to take over a ‘whale’ account to stop it from collapsing the system.

Solend said a single whale is sitting on an “extremely large margin position,” potentially putting the protocol and its users at risk. “In the worst case, Solend could end up with bad debt,” the firm said. “This could cause chaos, putting a strain on the Solana network.”

The account concerned had deposited 5.7 million sol tokens into Solend, accounting for more than 95% of deposits. Against that, it was borrowing $108 million in the stablecoins USDC and ether.

Read the full article: https://www.cnbc.com/2022/06/20/users-of-defi-app-solend-block-attempt-to-take-over-whale-account.html

Solend, a lending platform built on the Solana blockchain, tried to gain control of a “whale” account which it said was putting the protocol at risk. Solend’s users have since voted to block the move.

Do you think such proposals might trigger withdrawals from DeFi protocols?

A crypto lending app tried to take over a ‘whale’ account to stop it from collapsing the system.

4 thoughts on “A crypto lending app tried to take over a ‘whale’ account to stop it from collapsing the system.”

  1. So you wana tell me that if I invest my money and buy any coin , it is not mine because the owners of a coin can do with it whatever they like.
    How is that different than if I put money in a bank?

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