Solana Lending Platform of Solend Initiates New Proposal to Restrict Per Account Borrowing to $50M


  • The Solend staff has initiated a proposal to introduce a per-account borrow restrict of $50 million.
  • The restrict can be rolled out progressively, beginning with the per-account borrow restrict at $120 million and decreasing it until $50 million is reached.
  • Solend lately rolled again a proposal to take over a Solana whale account dealing with attainable liquidation that might have affected the platform’s liquidity.
  • The Solana whale is reportedly repaying the debt on Solend and taking out collateral.

The staff at Solend has launched into a brand new proposal to introduce a per-account borrow restrict of $50 million.

Based on the proposal, any debt above this restrict will qualify for liquidation regardless of the quantity of collateral positioned. As well as, the brand new restrict can be launched progressively, beginning with a per-account restrict of $120 million and decreasing it progressively in steps of $500k per hour till the $50 million is reached.

The brand new proposal additionally intends to briefly ‘scale back the utmost liquidation shut issue from 20% to 1%’ to cap the quantity that may be liquidated in a single transaction. It additionally proposes a short lived discount within the liquidation penalty for Solana from 5% to 2% to ‘scale back liquidator spam whereas nonetheless being sufficient of a bonus for liquidators to interrupt even on slippage.’

Solana Whale Scenario Nonetheless Inflicting a Pressure on Solend Customers.

Regarding motivation for the brand new proposal, the Solend staff defined that the Solana whale state of affairs remains to be inflicting a heavy pressure on the platform’s customers. Consequently, customers can’t withdraw USDC, nor can positions collateralized by USDC be liquidation. Consequently, there may be nonetheless a systemic danger to Solend.

They added:

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 influence to a manageable degree.

If accepted, the proposal will take impact as quickly as attainable. As a result of want to maneuver rapidly, take into account the 24 hour voting interval as discover for customers to scale back their borrow positions.

Solend will keep up a correspondence with liquidators to switch their bots to account for these modifications.

Solana Whale Has Reportedly Began Repaying Debt on Solend.

This third proposal by the Solend Group follows the occasions earlier highlighted of a Solana whale that had a large-enough place dealing with liquidation on the platform, which might have affected its liquidity.

The primary proposal, which handed, granted the Solend staff emergency powers over the account and determine a balanced approach of liquidating it. Nonetheless, a second proposal was quickly launched to negate the primary after the Solana and crypto communities voiced considerations over such a takeover.

Based on the staff at WuBlockchain, the Solana whale on Solend has since began repaying again debt and taking out collateral. A complete of 24 million USDC has to date been repaid, as highlighted within the following tweet.

Leave a Reply

Your email address will not be published.