DeFi Protocol voted to control a whale’s account to mitigate liquidation risks temporarily
One of the Solana network’s leading decentralized finance (DeFi) lending protocols Solend has reacted to criticism of a governance proposal by creating another one to null the first. A recently-approved submission gave Solend Labs emergency powers to access a whale’s wallet to avoid liquidation. The new proposal invalidates this and leaves Solend with a problem.
Firstly, On Sunday, June 19, Solend launched a governance vote titled “SLND1: Mitigate Risk From Whale.” This proposal would allow Solend to reduce the risk that the whale’s liquidation posed to the market by letting the lending platform access the whale’s wallet and enable liquidations over the counter. According to Solend, If they could not take over the wallet, it could potentially cause a meltdown, driving the price of SOL to zero.
The community condemned the move from Solend, which entirely goes against…