{"id":244199,"date":"2022-06-20T13:05:04","date_gmt":"2022-06-20T12:05:04","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=244199"},"modified":"2022-06-20T12:55:27","modified_gmt":"2022-06-20T11:55:27","slug":"solend-backtracks-on-emergency-power-proposal-as-crypto-community-questions-its-decentralization","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/solend-backtracks-on-emergency-power-proposal-as-crypto-community-questions-its-decentralization\/","title":{"rendered":"Solend backtracks on ’emergency power’ proposal following community backlash"},"content":{"rendered":"

Solana<\/a>-based decentralized finance protocol Solend backtracked on its initial proposal<\/a> to take over a whale's wallet by allowing users to vote on whether it should proceed or find another solution.<\/p>\n

The decision was made after the crypto community extensively criticized its initial proposal, which would have raised questions about its ‘decentralization.'<\/p>\n

Meanwhile, the new proposal\u00a0SLND2 <\/span><\/a>has <\/span>three implications: it will invalidate the first proposal, extend the voting period to a full day, and initiate a new, less encroaching way to solve the whale wallet crisis on the protocol.<\/p>\n

According to the developers, the recent price recovery of SOL has given them some time to get more feedback and seek new alternatives.<\/p>\n

However, the voting period is just a day because they believe there is a need to act fast and address the system risk. The risk here is that 20% of the whale's wallet could get liquidated if SOL's price should fall to $22.30.<\/p>\n

The liquidation will amount to around $20 million in bad debts, and developers worry that this could cause too much sell pressure on Solana. And such an event could even lead to a network failure.<\/p>\n

Crypto community bashes Solend<\/h2>\n

While Solend developers believe they are acting in the best interest of the protocol, members of the crypto community are questioning its claims of decentralization.<\/p>\n

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Congratulations, gentlepeople of Solend, you've reinvented TradFi, but with more steps and more frequent and unpredictable interruptions.<\/p>\n

— Emin G\u00fcn Sirer\ud83d\udd3a (@el33th4xor) June 19, 2022<\/a><\/p><\/blockquote>\n