Solend, a lending and borrowing protocol on Solana, has reversed yesterday’s controversial DAO decision to take control of its largest user account. A new governance vote has passed that invalidates yesterday’s move, with 99% of the votes supporting the new decision.
This all started when, on Sunday, the Solend team put up a governance vote asking to take over a large user loan in order to prevent a on-chain liquidation event.
The issue was that an unknown user held a $108 million stablecoin loan collateralized by 5.7 million Solana (SOL) tokens ($170 million) on Solend. The proposal to “mitigate risk from the whale” noted that the user in question had 95% of the SOL deposits in Solend’s main pool.
The main problem was that if the price of SOL dropped to $22.30, the whale’s account would be liquidated.
In its proposal, the Solend team claimed that a liquidation of this size on-chain was risky due to thin liquidity on the lending protocol. The team further made the case that if the on-chain liquidation went through, Solend would be at risk of accruing bad debt due to a cascading drop in SOL’s value.
The team suggested that rather than a protocol liquidation, the loan should be wound up via an over the counter (OTC) deal. The Solend governance system then hurriedly passed a vote that gave the team full power to confiscate the user’s position. In this vote, 88% of the voting power came from a single address.
Más tarde en las redes sociales, la decisión de gobierno recibió muchas críticas de muchos comentaristas que reprendieron al equipo por socavar el espíritu de la descentralización. En respuesta, el equipo dijo hoy que tomó nota de las críticas y presentó una segunda propuesta que busca invalidar la decisión de ayer. El DAO votó hoy con el 99% de los votos a favor de invalidar la última propuesta.
“Hemos estado escuchando sus críticas sobre SLND1 y la forma en que se llevó a cabo. El precio de SOL ha aumentado constantemente, lo que nos da algo de tiempo para recopilar más comentarios y considerar alternativas”, escribió el equipo de Solend.
