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What decentralization? Solana lender Solend approves whale wallet takeover to avoid DeFi implosion

2022.06.21 03:00

What decentralization? Solana lender Solend approves whale wallet takeover to avoid DeFi implosion
What decentralization? Solana lender Solend approves whale wallet takeover to avoid DeFi implosion

On Sunday, the decentralized finance (DeFi) sector came under scrutiny again after Solend, a popular DeFi protocol on Solana (SOL), put together a spur-of-the-moment governance proposal related to one of the whale wallets at risk of liquidation.

The proposal, dubbed “SLND1 : Mitigate Risk From Whale,” was abruptly launched on Sunday without announcement and the vote closed with a 97% approval rating. The scandal comes on the heels of last week’s sudden layoffs from Coinbase (NASDAQ:COIN) and BlockFi, and the liquidation debacle of Three Arrows Capital. Adding to the melee of unexpected volatility and market sell-offs, the spur-of-the-moment alterations of a supposed decentralized autonomous organization, or DAO, show that crypto is not as “decentralized” as its users may have thought.

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