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Solend Backpedals on Proposal to Take Over Solana Whale Account, Cites Community Feedback and Improved Crypto Market Conditions

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Summary:

  • The Solend team has done a one-eighty-degree turn on an approved proposal to take over a Solana whale account facing liquidation that could have strained the platform’s liquidity.
  • The team at Solend has explained that the decision to invalidate the first proposal was made due to community feedback and improved crypto market conditions.

The team at Solend has initiated a new proposal to invalidate the one that passed only yesterday, providing the team emergency powers to take over a Solana whale account that was facing liquidation that could have affected the platform’s liquidity.

Solend Team Cites Community Feedback and Improved Crypto Market Conditions.

In the new proposal, the Solend Team explains that they have been listening to the community’s feedback and are also optimistic about the improved market conditions surrounding Solana, hence the need to invalidate the previously passed proposal. They explained:

We’ve been listening to your criticisms about SLND1 and the way in which it was conducted. The price of SOL has been steadily increasing, buying us some time to gather more feedback and consider alternatives…

We’re committed to protecting user funds, transparency, and doing what’s right.

Initial Vote to Take Over the Whale Account Swayed By One Solana Account.

To note is that the first proposal to take over the account of the Solana whale facing liquidation passed with an overwhelming 97.5% majority consisting of over 1.155 million votes. However, over 1 million votes came from one Solana account, as highlighted in the screenshots below.

Purpose Bitcoin ETF Puked 24.5k BTC on Friday, Leading to the Weekend Low of $17.6k - Arthur Hayes 6
Final results of the initial Solend proposal to take over the SOL whale account.
Purpose Bitcoin ETF Puked 24.5k BTC on Friday, Leading to the Weekend Low of $17.6k - Arthur Hayes 7
Voting swayed by one account. Source, realms.today

Community Reaction on the First Solend Proposal.

With respect to the crypto-community reaction, the first proposal to take over the Solana whale account elicited mixed responses, as seen through the following samples from Twitter.

This is pretty wild. The Solend team wants to take over the whale’s account and execute the liquidation themselves. The whale’s position is so degenerate that if SOL drops too low it will create cascading liquidations across the DEX books (and potentially bad debt). “DeFi” – by @FatManTerra

Absolute comedy. @solendprotocol, a supposed “decentralized” lending protocol built on Solana has “voted” to take over a whales account with emergency powers to eliminate the chance of forced liquidation. “Decentralized” in name only. – by @DylanLeClair

Message to the @solendprotocol devs I am f*cking begging you not to do this. I know you’re scared. I know your VCs are pressuring you. I know some of your Solend bag holders are pressuring you. But this is flat out wrong and you know that. – by @ThePeoplesDegen

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