Solend Invalidates SOL Whale Wallets Takeover Plan In Governance Vote

Solend invalidates SOL Whale wallets takeover plan with its new governance vote so if Solend is unable to take over the account, some expect a possible meltdown and the SOL price reaching zero so let’s read more today in our latest blockchain news.

The Solana-based DEFI lending protocol Solend invalidates SOL whale wallets in a governance vote which gives the platform emergency power to access a whale’s wallet and avoid liquidation. The crypto lending platform launched a governance vote dubbed “SLDN1: Mitigate Risk From Whale” which allows Solend to reduce the risks that the liquidation poses to the market by allowing the lending platform access to the whale wallet and letting the liqudations happen OTC.

Governance proposal SLND2 is live https://t.co/WVqjqaFPz5

— Solend (we’re hiring!) (@solendprotocol) June 20, 2022

As per Solend, if Solana drops in value and the whale gets liquidated, the lending platform could end up with so much bad debt and can strain the network. The proposal was approved and triggered a lot of criticism from the community members. As the community condemned the move, it called it the opposite of what DEFi should be and called it illegal so the team initiated a second governance proposal vote to invalidate the previous proposal. The proposal ended with 1,480,264 votes in favor of disregarding the SLND1 proposal.

The new proposal invalidates the previous one and can push Solend to find more soutions that don’t involve forcibly taking over the account. It can also increase the governance voting time to a day. The situation put the lending platform into a dilemma so if solend succeeds at taking over the wallet and gets emergency powers, it could save SOL from an implosion. This will show that anyone’s assets can be confiscated on the platform and cause a boycott. On the other hand, if the Solend team is not able to mitigate the risks, some think that it will start a Solana meltdown and cause the SOL price to dump.

As recently reported, Solana Labs revealed the first details on the new fee implementation a month ago in a postmortem report after the network crash blamed on bots that overwhelm the NFT mint. According to the report, the new model will take the neighborhood fees approach which doesn’t impact the wider network. Yakovenko wrote a Twitter thread explaining how the new fee module will work, following the initial rollout of the v1.10.25 network upgrade.