Solana-based decentralized finance (DeFi) lending protocol, Solend, has created another governance vote to invalidate the recently passed proposal giving Solend Labs “emergency powers” to access a whale’s wallet to prevent its liquidation..
On Sunday, the cryptocurrency lending platform released a governance vote titled “SLND1: Mitigating Whale Risk.” This allows Solend to reduce the risk that the whale settlement poses to the market by allowing the lending platform to access the whale’s wallet. and allow settlements to occur over the counter (OTC).
According to Solend, if Solana (SOL) drops in price and the whale is liquidated, the lending platform may “end up bad debt” and strain Solana’s network. The proposal was approved, sparking criticism from community members.
like the community condemned the move, calling it opposed to what DeFi should be and outright illegal, the Solend team initiated a second governance proposal vote to invalidate the previously approved proposal. The proposal ended with 1,480,264 votes in favor of dismissing proposal SLND1.
The new proposal invalidates the previous vote and will lead Solend to find another solution that does not involve taking an account by force. In addition, it also increases the governance voting time to one day.
The situation has put the crypto lending platform in a dire quandary. If Solend manages to get hold of the whale wallet and is granted emergency powers, it could save SOL from a DeFi implosion. However, this will show that anyone’s assets can be seized within the platform and can cause a boycott.. Cryptokk.eth tweeted:
No matter what the team does, there is no way to change the fact that assets deposited into the platform can be confiscated by the team at any time. Escape from the platform is the best way out. At any time the team can tweet an announcement to forfeit your assets.
— cryptokk.eth (L,3) (@Black_K168) June 20, 2022
No matter what the team does, there is no way to change the fact that assets deposited on the platform can be seized by the team at any time. Escaping from the platform is the best way out. At any time the team can tweet an announcement to confiscate your assets
Secondly, If Solend’s team is unable to mitigate the risks surrounding the whale account, some believe which can trigger a collapse of Solana, causing the price of SOL to plummet sharply.
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