Solana Defi Platform Votes To Control Whale Account

Solana DeFi Platform Votes to Control Whale Account

Whale liquidations can cause a lot of chaos in the DeFi space. To avoid this, the Solana DeFi platform has voted to give emergency power to Solend Labs to temporarily take over the whale’s account. This will allow them to avoid any potential liquidation issues and keep the system stable.

The vote comes amid concerns that the whale’s actions could lead to the liquidation of the entire Solana ecosystem. Solend users were quick to act, with many calling for immediate action to be taken in order to protect the ecosystem from further damage. In a statement, Solend Labs said that it would

act in the best interests of the community.

It remains to be seen whether this latest move by Solend will be enough to quell the concerns of those worried about the potential for manipulation and other malicious activities in the DeFi space. However, it is clear that the community is taking steps to mitigate the risks posed by large holders of digital assets.

There is a well-known saying in the world of investing:

You don’t catch a falling knife.

The same can be said for trying to liquidate a position that is being rapidly sold off. Doing so over an OTC service would likely avoid such an outcome. But it also usurps entirely the smart contract–coded protocol Solend programmatically follows for every other borrower liquidation.


If you’re not familiar with the term, OTC stands for “Over-The-Counter.” In finance, this refers to any transaction that takes place outside of a formal exchange. This could be anything from two people agreeing to trade shares of stock directly between themselves to large institutional investors making trades through private networks.

The key difference between OTC and exchanges is that no central authority oversees the transactions. This lack of regulation can make OTC trading riskier than exchange trading, but it also affords participants more flexibility in how they trade. For example, an investor looking to unload a large position quickly may find it easier to do so via an OTC desk than waiting for their order to fill on an exchange.

OTC desks are typically used by institutional investors and high-net-worth individuals because they provide access to liquidity that isn’t available on exchanges. They also offer more personalized service than exchanges, which can be important when dealing with large sums of money.

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Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.

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