As CoinGape reported, the Solana-based “decentralized” lending protocol Solend has been grappling to keep away from a liquidity disaster amid the SOL value crashing and the whale accounts having big margin calls.
Earlier, the Solend protocol deliberate to overhaul the whale accounts with emergency powers. Nonetheless, it confronted an enormous backlash from the neighborhood. Whereas the liquidity threat continues to hover over Solend. It has include a 3rd proposal SLND3 that seeks to place a cap on the borrowing restrict and scale back the utmost liquidations.
Solend’s SLND3 Proposes the Following:
- Put a per account most borrowing cap at $50 million. Whatever the collateral worth, any debt above this can be eligible for liquidation.
- Begin with a per-account borrow restrict of $120M USD and steadily scale back it to $50M. Solend will implement a discount of $500K per hour.
- Solend plans to restrict the liquidation per transaction by an element of 20. This implies the utmost liquidation shut issue per transaction will scale back from 20% to 1%.
- Solend will even scale back the liquidation penalty for SOL from 5% to 2%. This can assist to cut back the liquidation spam.
For its third proposal, Solend has up to now diminished practically 5,000 neighborhood votes with 98% in favor. The announcement notes:
Solend is reaching out to market makers to assist present higher on-chain liquidity. This mixed with our proposals ought to scale back DEX market impression to a manageable degree.
There have been a number of anomalies identified with the voting going down on Solend. A single voter passing on over 90% votes in favor and deciding the destiny of $270m in consumer property.
Effectively, Solend has to actually make things better earlier than issues get from unhealthy to worse and the neighborhood loses religion. At present, the latest market reversal and the SOL value buying and selling at $35 are giving them respiration area. Nonetheless, if the market collapses, and SOL drops to $20, there may very well be main liquidations in place.
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