Solend user, which is a decentralized For lending on Solana has opened an urgent vote. To support proposals aimed at reducing the risks imposed by any user with a large margin position on Solend.
verseofferto “reduce the risk of whales” caused by having The “user in question” deposits 95% of SOL in the main protocol pool among other issues.
If the SOL price drops to $22.30, the offer states that The whale’s account will be forced to sell collateral for up to 20% of the borrowing, making it difficult for the market to absorb this selling pressure. And in the worst case, Solend could end up in bad debt. And this could be followed by causing chaos and straining the Solana network.
The author of the proposal said They are unable to accommodate whales to mitigate the risk. So it’s obvious that action and voting are required.
Voting “no” is doing nothing. While the “Yes” vote was for: “Enforce special margin requirements for large whales with more than 20% loans and give Solend Labs emergency powers to temporarily take control of whales’ accounts. and the compulsory sale of collateral must be performed in an OTC form instead.”
The proposal also states that The emergency power granted by the “Yes” vote will be revoked when “Whale’s account has returned to safe levels.”
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