Solana DeFi Protocol Votes to Shut Down Whale Accounts to Protect Network
Solana DeFi Protocol
Modified Date:- Published Date:-Categories: Solana
The team at Soland, a Solana-based DeFi protocol, recently terminated whale accounts to reduce the risks posed to the Solana network. There was a vote by the Soland community to take temporary control of the whale's account or liquidate its holdings through over-the-counter (OTC) trading. Major concerns were that with the price of SoLand falling to US$22.30, Whale's account would borrow up to 20 percent, an estimated US$21 million, and landed Soland with a significant amount of bad debt in such an event. could have been done . The options presented to the community included doing nothing, which would present a systemic risk to Soland and its users. Allowing liquidations of this magnitude to occur on-chain is risky because the liquidity of the DEX is not sufficient to handle a sale of this size and could have cascading implications.
Solana, Solana DeFi Protocol, Cryptocurrency, Solend, Solana Network, Solana Community, OTC, DEX