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


The logo of cryptocurrency platform Solana.

Jakub Porzycki | NurPhoto via | Getty Images

Decentralized finance platforms are going to extreme lengths to limit the fallout from a sell-off in cryptocurrencies.

Solend, a lending platform built on the Solana blockchain, tried to gain control of its largest account, a so-called “whale” investor that it said could significantly influence market movements.

Solend’s users have since voted to block the move.

What is Solend?

If sol’s price sank below $22.30, 20% of the account’s collateral — about $21 million — is at risk of being liquidated, Solend said. Sol was trading at a price of $34.49 on Monday.

On Sunday, Solend passed a proposal granting it emergency powers to take over the whale account, an unprecedented move in the DeFi world.

Solend said the measure would allow it to liquidate the whale’s assets via “over-the-counter” transactions — as opposed to on-exchanges trades — to avoid a possible cascade of liquidations.

DeFi apps under strain



Source link