The Solana (SOL) whale which was exposed towards the potential takeover with a recent Solend governance election has become in contact with the lending protocol and moved $25 million price of USD Gold coin (USDC) debt to Mango Markets.
Inside a tweet, Solend shared the whale has acted around the team’s suggestion to maneuver its position across various lending protocols. The act reduces the effective use of USDC within Solend, allowing its users to withdraw their assets once again.
USDC utilization has dropped from 100% to 98% meaning users can withdraw again pic.twitter.com/RRCkIbHv51
— Solend (we are hiring!) (@solendprotocol) June 21, 2022
As the move appears just like a band-aid means to fix a larger liquidation problem, the Solend team highlighted that they’re dealing with the whale and also the Mango team to produce a more lengthy-term means to fix the actual problem.
Aside from this, the lending protocol has additionally passed another governance election which will considerably lower the account borrow limit that’s presently at $120 million to $50 million. Debt over the new limit set is going to be susceptible to liquidation regardless of what its collateral value is.
The protocol has additionally reduced the quantity that may be liquidated within one transaction by lowering its maximum liquidation close step to 1%. Additionally, it decreased the liquidation penalty for Solana from 5% to twoPercent. Both reductions are temporary and could change when the whale situation continues to be worked with.
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On Sunday, the Solend lending platform received criticisms because of its SLND1 governance election that aims to dominate the whale’s wallet to mitigate risks. The election closed having a 97% approval rating. However, it received many criticisms because the move is the opposite of the concepts of decentralization.
Due to the negative feedback brought on by the first move, the lending platform made the decision to carry a second governance election to invalidate SLND1. The 2nd proposal was approved, gathering 1,480,264 votes in support of disregarding the wallet takeover plan.
