In a shocking move, users of Solend, a Solana-based borrowing and lending service, on Sunday voted to take over the largest whale account on the network. According to Solend, the whale held “an extremely large margin position”. Reportedly, the unprecedented move came as an effort to avoid liquidation “chaos”. What exactly happened with the whale account and how did Solend take over the account?
What Happened at Solend?
On Sunday, Solend Labs posted a governance proposal to liquidate the largest whale account on the network. The platform claimed that the whale’s “extremely large margin position” was “putting Solend protocol and its users at risk”. Based on the details they shared, the whale held 5.7M SOL (worth about $170 million) at a liquidation price of $22.30.
The user had also used their holdings to borrow $108 million in stablecoins. In the event that they might be liquidated, it could…