Solend, a Solana-based lending protocol, has passed governance proposal SLND2, which nullifies the contentious “emergency power” proposal from Sunday. It will also allow the team to take less drastic measures in the event of a large on-chain liquidation.
The anonymous wallet at the center of the crisis had deposited 95 percent of Solend’s total SOL pool and accounted for 88 percent of USDC borrowing. With SOL’s plummeting price, Solend’s single-largest user came perilously close to a massive margin call. If SOL falls below $22.30, the protocol will automatically liquidate up to 20% of the whale’s collateral.
The SLND2 proposal, in addition to invalidating the previous proposal, shortens the governance voting period to one day.
With a 99.8 percent approval rating, SLND2 received 1,480,264 “yes” votes and 3,535 “no” votes. One wallet paid $700,000 for additional voting power, accounting for 90 percent of votes cast.
According to the company’s blog, the Solend team will right now work on a new scheme that does not require emergency powers to take over an account.
We recognize that a one-day voting period is still short, co-founder Rooter wrote in a blog post, but we need to act quickly to address the systemic risk and the fact that normal users cannot withdraw USDC.