5 ms·

How did the "whale" have so much invested in the market but such little voting rights?

qabqabaca 4y ago
The whale has been inactive and almost certainly didn't vote on this proposal. The Solend team tried to reach out to them via socials multiple times and they never responded. You can see their attempts in the "What We've Tried" section here[1] [1] https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxPMnXJUZ1Hn/proposal/HuaL6cDtuNtfnJgvwMnYiZDHVCoLAuDtVFgJD8kYChJ4 https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxP...
- 55555 4y ago
  > has 170MM staked and isn't picking up the phone Three Arrows Capital?
renewiltord 4y ago
They don't have voting rights because they don't have SOL. They don't have SOL because they put it in there to get USDC+USDT. If they don't believe in the depth of the SOL/USD(C|T) books this could just be a way to sell SOL or go short SOL. This whale is probably just happy to default on the loan and get liquidated at this point.
- granddemolisher 4y ago
  > This whale is probably just happy to default on the loan and get liquidated at this point. Understandable but absurd given the systematic risk.
- wronglebowski 4y ago
  Are they in the red on the loan? The numbers and functions are where I get confused. "a whale has deposited 5.7M SOL ($170M and borrowed 108M USDC and USDT borrowed)" So they put in 5.7 SOL at some price, and used it to borrow stablecoins? If their position is liquidated how does that play out? If he traded coin for coin how do they get the traded assets back?
  - renewiltord 4y ago
    He keeps what they gave him, they keep what they get from what he gave them. Ideally they over collateralize. So if SOL is 100 USDT, he puts in 5 SOL and gets 50 USDT per SOL (250 USDT). If SOL approaches 50 USDT, (say 51 USDT) they sell the SOL he gave them and keep the proceeds (they have 255 USDT and are ahead by 5 USDT). The loan has reached an end condition. Another thing that could happen is he does something with the 250 USDT loaned to him and he gets 300 USDT. He gives back the 250 USDT and gets back his 5 SOL and now has 5 SOL and 50 USDT (minus some small interest or fee). This is another end condition. All works on the small scale. But presumably you can think of exploits on the large scale. A simple one is that the loan is so large in that they can't liquidate without slippage (price moving as they sell causing them to gain less than they anticipated). In this case, they might want to exit a little earlier.
- psKama 4y ago
  > This whale is probably just happy to default on the loan and get liquidated at this point. It's too bold to assume this. This whale is probably so angry right now because they ruined his/her plan causing him/her million of dollars. 1) Find an opportunity to drive the price of SOL down due stupid DeFi design lacking 101 Economy knowledge. 2) Go short on SOL 3) Use the opportunity to cause a slippage of 46% in price which further triggers chain liquidation which causes the price even to go further down and most likely cause Solend to shut down creating more and more panic sell. 4) Make crazy profit. Solend to call themselves "decentralized" now is just a joke.
  - deleted 4y ago
    [deleted]
  - SilasX 4y ago
    If they wanted to do that, they would have deposited stablecoins and borrowed Solana.
    - UncleEntity 4y ago
      Unless they had a plan that only worked by doing it the way they did it. People don’t really make crazy profits by following the herd, they see something everyone else misses and bet big.
      - SilasX 4y ago
        What is that replying to? What I suggested isn’t “following the herd”, and does attempt to profit off of something others didn’t notice. And unlike the plan the parent gave, this one actually results in a short position in SOL and which allows you to dump the SOL on the market at a time of your choosing, rather than whether it happens to fall far enough and the interest has accumulated enough. The position of the whale, under the parent’s plan, is a clumsier version of what I described because it leaves an unknown lag before the SOL gets dumped. > Unless they had a plan that only worked by doing it the way they did it. I don’t know many short gambles that actually take a long, and which deliberately introduce uncertainty in when an asset is dumped on the market. And if this is your best defense of its merits (“maybe this is the only way it would work”), you’re offering nothing but unbacked speculation (that mistakenly read me as suggesting they “follow the herd”, no less).
- yieldcrv 4y ago
  I think SLND (Solend) is the token involved in voting rights here.
  - renewiltord 4y ago
    Ah, my mistake. Thanks for correction.

The whale has been inactive and almost certainly didn't vote on this proposal. The Solend team tried to reach out to them via socials multiple times and they never responded. You can see their attempts in the "What We've Tried" section here[1] [1] https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxPMnXJUZ1Hn/proposal/HuaL6cDtuNtfnJgvwMnYiZDHVCoLAuDtVFgJD8kYChJ4 https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxP...

55555 4y ago
> has 170MM staked and isn't picking up the phone Three Arrows Capital?

renewiltord 4y ago

They don't have voting rights because they don't have SOL. They don't have SOL because they put it in there to get USDC+USDT. If they don't believe in the depth of the SOL/USD(C|T) books this could just be a way to sell SOL or go short SOL. This whale is probably just happy to default on the loan and get liquidated at this point.

granddemolisher 4y ago
> This whale is probably just happy to default on the loan and get liquidated at this point. Understandable but absurd given the systematic risk.
wronglebowski 4y ago
Are they in the red on the loan? The numbers and functions are where I get confused. "a whale has deposited 5.7M SOL ($170M and borrowed 108M USDC and USDT borrowed)" So they put in 5.7 SOL at some price, and used it to borrow stablecoins? If their position is liquidated how does that play out? If he traded coin for coin how do they get the traded assets back?
- renewiltord 4y ago
  He keeps what they gave him, they keep what they get from what he gave them. Ideally they over collateralize. So if SOL is 100 USDT, he puts in 5 SOL and gets 50 USDT per SOL (250 USDT). If SOL approaches 50 USDT, (say 51 USDT) they sell the SOL he gave them and keep the proceeds (they have 255 USDT and are ahead by 5 USDT). The loan has reached an end condition. Another thing that could happen is he does something with the 250 USDT loaned to him and he gets 300 USDT. He gives back the 250 USDT and gets back his 5 SOL and now has 5 SOL and 50 USDT (minus some small interest or fee). This is another end condition. All works on the small scale. But presumably you can think of exploits on the large scale. A simple one is that the loan is so large in that they can't liquidate without slippage (price moving as they sell causing them to gain less than they anticipated). In this case, they might want to exit a little earlier.
psKama 4y ago
> This whale is probably just happy to default on the loan and get liquidated at this point. It's too bold to assume this. This whale is probably so angry right now because they ruined his/her plan causing him/her million of dollars. 1) Find an opportunity to drive the price of SOL down due stupid DeFi design lacking 101 Economy knowledge. 2) Go short on SOL 3) Use the opportunity to cause a slippage of 46% in price which further triggers chain liquidation which causes the price even to go further down and most likely cause Solend to shut down creating more and more panic sell. 4) Make crazy profit. Solend to call themselves "decentralized" now is just a joke.
- deleted 4y ago
  [deleted]
- SilasX 4y ago
  If they wanted to do that, they would have deposited stablecoins and borrowed Solana.
  - UncleEntity 4y ago
    Unless they had a plan that only worked by doing it the way they did it. People don’t really make crazy profits by following the herd, they see something everyone else misses and bet big.
    - SilasX 4y ago
      What is that replying to? What I suggested isn’t “following the herd”, and does attempt to profit off of something others didn’t notice. And unlike the plan the parent gave, this one actually results in a short position in SOL and which allows you to dump the SOL on the market at a time of your choosing, rather than whether it happens to fall far enough and the interest has accumulated enough. The position of the whale, under the parent’s plan, is a clumsier version of what I described because it leaves an unknown lag before the SOL gets dumped. > Unless they had a plan that only worked by doing it the way they did it. I don’t know many short gambles that actually take a long, and which deliberately introduce uncertainty in when an asset is dumped on the market. And if this is your best defense of its merits (“maybe this is the only way it would work”), you’re offering nothing but unbacked speculation (that mistakenly read me as suggesting they “follow the herd”, no less).
yieldcrv 4y ago
I think SLND (Solend) is the token involved in voting rights here.
- renewiltord 4y ago
  Ah, my mistake. Thanks for correction.