Solana decentralization on display?
The Solana-based Defi protocol Solend recently voted to temporarily overtake a large and highly levered account. Although the proposal was later invalidated, another proposal has been approved in an attempt to mitigate systemic protocol risk.
Jun 20th 2022
Source: Tradingview (Coinbase)
On Sunday, the organization behind the Solana-based algorithmic, “decentralized” protocol for borrowing and lending–the Solend DAO–passed its first governance proposal vote with 97.5% affirmative votes. Notably, one whale provided 1M out of the 1,155,431 total votes—singlehandedly elevating the vote above the necessary 1% participation threshold.
The proposal, outlined a plan to grant the Solend team emergency powers to manually liquidate a large and unresponsive account belonging to Solend’s largest user in an over-the-counter (OTC) trade.