The Solana (SOL) whale that was subjected to the potential takeover by a latest Solend governance vote has gotten in contact with the lending protocol and moved $25 million price of USD Coin (USDC) debt to Mango Markets.
In a tweet, Solend shared that the whale has acted on the crew’s suggestion to maneuver their place throughout varied lending protocols. The act reduces the utilization of USDC inside Solend, permitting its customers to withdraw their belongings as soon as extra.
USDC utilization has dropped from 100% to 98% which means customers can withdraw once more pic.twitter.com/RRCkIbHv51
— Solend (we’re hiring!) (@solendprotocol) June 21, 2022
While the transfer looks like a band-aid answer to a much bigger liquidation drawback, the Solend crew highlighted that they’re working with the whale and the Mango crew to create a extra long-term answer to the underlying drawback.
Apart from this, the lending protocol has additionally handed one other governance vote that can considerably decrease the account borrow restrict that is at present at $120 million USD to $50 million. Debt above the brand new restrict set will probably be topic to liquidation it doesn’t matter what their collateral worth is.
The protocol has additionally diminished the quantity that may be liquidated inside one transaction by reducing its most liquidation shut issue to 1%. It additionally lowered the liquidation penalty for Solana from 5% to 2%. Both reductions are non permanent and should change as soon as the whale state of affairs has been handled.
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On June 19, the Solend lending platform obtained criticisms for its SLND1 governance vote that goals to take over the whale’s pockets to mitigate dangers. The vote closed with a 97% approval score. However, it obtained many criticisms because the transfer goes towards the ideas of decentralization.
Because of the unfavourable suggestions brought on by the preliminary transfer, the lending platform determined to carry a second governance vote to invalidate SLND1. The second proposal was accepted, gathering 1,480,264 votes in favor of disregarding the pockets takeover plan.