September 29, 2023

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DeFi Solend app users tried to take over a ‘whale’ account

DeFi Solend app users tried to take over a 'whale' account

The logo of the cryptocurrency platform Solana.

Jacob Borzeki | NurPhoto via | Getty Images

Decentralized finance platforms are making great efforts to limit the fallout from cryptocurrency sales.

Solend, a lending platform built on the Solana blockchain, has attempted to take control of its largest account, a so-called “whale” investor that it said could significantly influence market movements.

Since then, Solend users have voted to block the move.

What is Solend?

If Sol’s price drops below $22.30, then 20% of the account’s collateral — about $21 million — is at risk of liquidation, Solend said. Seoul was trading at $34.49 on Monday.

On Sunday, Solend passed a proposal giving it emergency powers to take over a whale account, an unprecedented move in the DeFi world.

Solend said the measure would allow it to liquidate whale assets through “off-exchange” transactions – as opposed to deals on exchanges – to avoid a potential chain of liquidation.

DeFi apps under stress

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