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?