The initial outcry against Solend’s SNLD1 proposal has made it propose an SNLD2, with the bid to step back from controlling the whale account, which has since gotten a huge vote in its favor.
Solend, a Solana-based “decentralized” lending platform, launched an SNLD1 proposal on Sunday to take over a whale account with emergency powers and avoid a chain reaction of possible liquidations.
Solend alleged that a whale began an exceptionally large margin position that would liquidate 20% of their borrowing, or $21 million if the SOL price fell below $22,30. This would put all Solend protocol users in grave danger. “This could lead to turmoil, putting a burden on the Solana network,” Solana warned.
However, given that it is a “decentralized” system, this sparked a big outcry in the crypto world for its capacity to control a whale account. The fascinating part was that Solend received 97.5 percent of the votes (1.15 million).
The good news is that, following the weekend slump, the crypto market is showing signs of recovery. As of press time, Solana (SOL) had regained 6.5 percent and was trading above $32.05. This temporarily puts the whale account’s liquidation risks on hold.
Solend Comes With A New Proposal SLND2
Solend stated in their most recent announcement that they have listened to the community. As a result, the lending platform has proposed a fresh proposal SLND2, preferring not to provide the whale account emergency powers. According to the announcement:
“We’ve been listening to your criticisms about SLND1 and how it was conducted. The price of SOL has been steadily increasing, buying us some time to gather more feedback and consider alternatives.
We recognize that a voting time of 1 day is still short, but we need to act swiftly to address the systemic risk and the fact that normal users can’t withdraw USDC. We’re committed to protecting user funds, transparency, and doing what’s right”.
The SLND2 also received over 98 percent of the vote or over 18,000 votes in their favor.
