Friday, October 7

Solana-based DeFi lending protocol Solend has Initiated another governance vote to refute the recently-approved Proposal To Takeover Whale’s Wallets.

Solana-based decentralized finance lending protocol Solend has fabricated another governance vote to refute the lately-approved suggestion that allows Solend Labs  “emergency powers” to access a whale’s wallet to avoid liquidation. 

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Governance vote was created on Sunday by crypto leading platform and titled “SLND1: Mitigate Risk From Whale.” To allow;

  • Solends to reduce the risk that the whale’s liquidation poses to the market by letting the lending the platform access the whale’s wallet
  • And allow the liquidations to happen over-the-counter (OTC)

The reason behind this is;

As stated by Solend, if the Solana drops in price and the whale gets liquidated, the lending platform may  “end up with bad debt” and strain the Solana network. The proposal was approved following the triggering of the criticism of the members of the community.

This was the reason the Solana team has to initiate a second governance proposal vote to cancel the initial one The proposal ended with 1,480,264 votes in favor of disregarding the SLND1 proposal.

Read Also: Tim Harrison Responds to speculation of an imminent delay on the Vasil Hard Fork scheduled for the end of June.

Crypto lending platform in a dilemma

  • If the Solend succeeds at taking over the whale’s wallet and being granted emergency powers, it may save SOL from a DeFi implosion. Although, this will show that anyone’s asset can be usurped within the platform and can cause a boycott as tweeted by Cryptokk.eth
  • If the Solend team is not able to mitigate the dangers around the whale’s account, some believe that it can initiate Solana’s meltdown, causing a major dump.

Solana Settles the performance Declination

In the last 10 months, Solana has suffered performance declination on three different occasions; which range from how Solana went down for nearly 17 hours the last September due to the overwhelming traffic emanation from DeFi token launch, to the same downtime that happen recently in April that took 7 good hours and the most recent one in June 1st that claimed hours.

Solana developers came together to think of how to eradicate the issue and they came up with replacing the UDP with Google’s QUIC protocol in the new update that came after they have attempted to normalize the operations around the platform’s existing user datagram protocol (UDP).

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