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Solend prevents the Solana whale wallet takeover with a second governance vote

Solend, a decentralized finance (DeFi) lending system based in Solana, has set up another governance vote to get rid of the recently approved proposal that gives Solend Labs “emergency powers” to access a whale’s wallet in order to avoid being liquidated.

On Sunday, a governance vote called “SLND1: Mitigate Risk From Whale” was held by the crypto lending platform. This lets Solend lower the market risk caused by the whale’s liquidation by giving the lending platform access to the whale’s wallet and letting the liquidations happen over-the-counter (OTC).

Solend says that if the price of Solana (SOL) drops and the whale is sold, the lending platform may “end up with bad debt,” which would put stress on the Solana network. The request was granted, which made people in the neighborhood upset.

The Solend team held a second governance proposal vote to get rid of the plan that had already been approved, even though the community was against it and said it was the exact opposite of what DeFi should be and was illegal. With 1,480,264 votes against the SLND1 plan, the proposal was turned down.

The new plan throws out the vote from before, so Solend has to come up with another plan that doesn’t involve taking over an account by force. Also, it cuts down the time for voting on governance to one day.

Related: The price of SOL is getting close to its yearly low, and Solana TVL has lost $870 million in just three days.

The situation has made it hard for the crypto lending platform. Solend might be able to save SOL from a DeFi implosion if he is able to steal the whale’s money and get emergency powers. But this shows that anyone’s assets can be taken on the platform, which could make people not want to use it. On Twitter, Cryptokk.eth wrote:

Governance proposal SLND2 is live

— Solend (we’re hiring!) (@solendprotocol) June 20, 2022

On the other hand, if the Solend team can’t reduce the risks associated with the whale’s account, it could cause a Solana meltdown, which would cause the price of SOL to drop by a large amount.

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The post Solend prevents the Solana whale wallet takeover with a second governance vote appeared first on NFT News Pro.