Solana crisis can shut the network
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The crisis in the Solana network
For those unfamiliar, the Solend platform is a Solana currency-based lending platform. At the heart of the storm that has been raging for the past two days is the anonymous wallet which has deposited 95% of the entire Solend project of the Solend project and represented 88% of USDC loans. That is, the wallet provided the Solana currency as collateral and in return received the USDC currency as a loan. The problem is that the user’s collateral has dangerously approached the state of liquidation due to the decrease in the value of the price of the Solana currency (SOL). If the SOL coin reaches a price of $ 22.30, the Solend protocol will automatically eliminate up to 20% of the whale’s collateral. If 20% of the collateral that is actually SOL currency is eliminated, this could lead to the collapse of the Solana network.
Therefore, the developers of Solana created a quick vote to take over the whale’s wallet and carry out the liquidation (liquidation of collateral) for it in a moderate way using OTC. As mentioned, last night the vote was approved by a majority.
Back to the polls
After harsh criticism of the hostile takeover, Solana returns to the polls with a flash vote on the question of whether to disqualify the “emergency powers” program we wrote about at the beginning of the article.
At the time of writing, the Solend Protocol gives its currency holders six hours to vote. A “yes” vote on the SLND2 bill will result in: 1. Canceling the first vote; 2. Extension of the voting period by one day; Start work on a new, less drastic solution without “emergency forces” for the whale wallet crisis.
“We understand that one-day voting time is short,” the platform’s founder Rooter wrote in a blog post, “but we need to act quickly to address systemic risk and the fact that regular users cannot withdraw their USDC. We ask our community to be active in government in the coming days.