Solana: Did this platform avert the chances of a million-dollar loss?

Sahana Kiran
Source – Unsplash

Over the last few days, a Solana-based DeFi platform, Solend, has been dealing with the fear of the potential loss of millions of dollars. With one whale entailing the power to meddle with the market through liquidation, the platform was trying to do all it took to avoid the same. However, it looks like the whale decided to listen to Solend.

Solend has been rolling out multiple proposals fearing the possible liquidation of funds. While some were against the laws of DeFi, a few others brought temporary respite to the network. But the whale, with a large amount of Solana in its pocket, chose to spread its position across other lending platforms.

The network revealed that a $25 million in USDC debt had been sent over to Mango Markets.

Did the whale’s latest move save Solend and its users from incurring heavy loss? Not just yet. In another set of tweets, the platform pointed out that the distribution of the whale’s position was only the first step, and this would not address the entire problem as the large liquidation wall continues to exist. However, Solend noted that it worked with the whale and Mango Markets to find a suitable solution.

Did Solend meddle with the ethos of DeFi?

While the whale had a vital role to play, an array of individuals went on to call out Solend for defying the laws of DeFi. Several pointed out that forcing the whale to spread his positions wasn’t decentralization. Another Twitter user noted that the platform would have been okay with the whale if it was a bull market. But, since it’s a bear market, everybody hates the whale.

As these jabs about Solend not being decentralized enough started pouring in, some suggested that the firm did what it had to. Certain entities even went on to laud Solend for handling the situation.

Even though decentralization was meddled with, the community appreciated Solend’s timely move.