Solana-Based 'DeFi' Lender Solend Goes for Whale Hunting and Backpedals Instantly

cryptonews.com:

A new proposal put forward by Solana (SOL)-based borrowing and lending service Solend to disapprove the takeover of the protocol's largest account following huge backlash from the community has passed with an overwhelming majority of votes.

The new proposal, dubbed SLND2, asked to invalidate SLND1, the original proposal that had approved the takeover of one of the whale wallets at risk of liquidation.

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

More specifically, the SLND2 proposal invalidates the previous proposal, increases governance voting time to one day from six hours, and suggests "work on a new proposal that does not involve emergency powers to take over an account."

The majority of voters supported the new proposal. On Monday morning, with the voting finished, 99.8% of the votes have been cast in support of SLND2. Therefore, in regards to the approval quorum, the site says: "required approval achieved."

Meanwhile, the original proposal, SLDN1, had granted Solend "emergency powers" to liquidate the whale's vulnerable assets via over-the-counter (OTC) trades to avoid "putting Solend protocol and its users at risk."

The Solend "whale" had deposited SOL 5.7m onto Solend, or over 95% of the main pool's deposits, and borrowed USD 108m worth of USDC and USDT, according to the proposal, which claimed that this "extremely large margin position" was getting close to a catastrophic on-chain liquidation.

The whale’s account would become liquidatable for up to USD 21m if the price of SOL drops to USD 22.30, according to the old proposal.

"Despite