coindesk.com
A large wallet at the center of the governance drama at Solana lending protocol Solend started to move millions of dollars of cryptocurrencies this morning, Solend said in a tweet.
The move potentially averts the risk of contagion in case of a liquidation that could have caused hundreds of millions of dollars in losses.
The anonymous wallet had deposited 95% of Solend’s pool of SOL tokens and represented 88% of USDC borrowing, but came close to a margin call last week as the SOL price dropped more than 40% to as low as $27.
The protocol would have automatically liquidated up to 20% of the whale’s collateral if SOL hit $22.30, and potentially led to damage in the broader Solana ecosystem. A governance vote was floated by protocol developers to take control of the account and take adequate risk management steps.
The wallet’s actions Tuesday came as the SOL price rose by 12% over 24 hours to hit $37. This means the liquidation levels are far below current levels, allowing the wallet’s user to take necessary steps to prevent unforeseen damages in the case of liquidation.