The suggestion to “mitigate risk from the whale” said, among other things, that the user in issue had deposited 95 percent of SOL in the protocol’s primary pool and had not been heard from in 12 days.
The writers of the proposal said that they had been unable to convince the whale to lower the danger, therefore it was evident that action was required, hence the vote.
Today, users of Solend, a decentralised protocol for lending and borrowing on Solana, voted decisively in favour of a proposal designed to mitigate the risk presented by a particular user with a large margin position on Solend.
The suggestion to “mitigate risk from the whale” said, among other things, that the user in issue had deposited 95 percent of SOL in the protocol’s primary pool and had not been heard from in 12 days.
According to the idea, if SOL fell below $22.30, the whale’s account would become liquidate for up to 20 percent of its borrowings, which would be difficult for the market to absorb, and in the worst-case scenario, Solend may incur bad debt. This might create disorder and strain the Solana network.
The writers of the proposal said that they had been unable to convince the whale to lower the danger, therefore it was evident that action was required, hence the vote.
A “no” vote was to have no effect, but a “yes” vote was to: “Enact exceptional margin requirements for huge whales that represent over 20 percent of borrows and allow Solend Labs emergency ability to temporarily take over the whale’s account so the liquidation may be conducted OTC.”
Additionally, the plan said that emergency powers given by a “yes” vote would be rescinded when the “whale’s account reaches a safe level.”
Also Read: Bitcoin Falls Out Of The Top 10 Global Assets As Selling Pressure Intensifies
Wallets