The proposal, dubbed “SLND1: Mitigating Risks for Whales,” popped up roll out No announcement was made on Sunday, and the vote ended with 97 percent of the vote.The scandal follows last week’s sudden layoffs at Coinbase and BlockFi, and Three Arrows Capital liquidation failedAside from the scuffle of unexpected volatility and market sell-offs, impulsive changes in so-called Decentralized Autonomous Organizations, or DAOs, suggest that crypto isn’t as “decentralized” as users think.
Details of the proposal include the whale’s wallet address and more in-depth information on why this account is causing problems for Solend. Part of the main problem is that large accounts face liquidation, which can put pressure on Solend and its users.
According to the proposal, “If SOL falls to $22.30, the whale’s account will be able to liquidate up to 20% of the borrowing ($21 million).” The proposal is to take control of the whale’s account and clear it through over-the-counter (OTC) trades .
As usual, immediate rebates from Twitter followed. Arguments include the damage the move could do to DeFi’s overall image. Controlling one of Solend’s wallets means that the fundamentals of DeFi are called into question. The move also left a stain on Solender’s ability to manage debt.
1) Solend labs is a bad precedent in DeFi. They propose to take over user wallets so that settlements can be performed through OTC trades. This is a bad idea for the following reasons:
— House (@0xHous) June 19, 2022
As Emin Gün Sirer, founder and CEO of Ava Labs pointed out, if Solana’s price (Sol) is too low.
What the hell is this. https://t.co/OQZGLgu2jC
— Emin Gün Sirer (@el33th4xor) June 19, 2022
Perhaps, multiple Cracks in the Crypto Ecosystem start by haste, compulsion, and Hasty and manipulated decisions. Freewheeling layoffs and breaking into DeFi wallets are far from emphasizing the sacred ideals of cryptocurrency decentralization, and these moves may bring Further criticism and ridicule of the department.
This is a developing story and will be updated as more information becomes available.