en
Back to the list

DeFi Protocol Solend Passes Governance Vote to Reverse ‘Emergency Powers’


www.coindesk.com 20 June 2022 10:55, UTC
Reading time: ~2 m

Solend, a lending protocol based on Solana, has passed governance proposal SLND2 that invalidates the controversial "emergency power" proposal from Sunday. It will also give the team time to take less drastic measures on a large on-chain liquidation.

The anonymous wallet at the heart of the crisis had deposited 95% of Solend’s entire SOL pool and represented 88% of USDC borrows. But Solend’s single-largest user came dangerously close to a massive margin call with SOL’s cratering price. If SOL hit $22.30, the protocol would automatically liquidate up to 20% of the whale’s collateral.

The SLND2 proposal, as well as invalidating the previous proposal, also increases governance voting time to one day.

SLND2 received 1,480,264 "yes" votes and 3,535 "no" votes with a majority of 99.8%. One wallet paid $700,000 for additional voting power, ultimately making up 90% of votes.

The Solend team will now "work on a new proposal that does not involve emergency powers to take over an account," according to the company's blog.

“We recognize that a voting time of 1 day is still short,” a blog post by co-founder Rooter said, “but we need to act swiftly to address the systemic risk and fact that normal users can’t withdraw USDC."

Read more: Solend’s Whale Liquidation Crisis Prompts Second Vote to Reverse ‘Emergency Powers’


   Source
Back to the list

Similar news
Suggest news


DeFi
Solend DAO is Increasing Voting Time and Invalidating SLND1
www.cryptonewsz.com 20 June 2022 11:00, UTC