Can someone tell me if my understanding is correct? Soland offers a service to loan stablecoins out. To do this, you need to provide some amount of their solan

Can someone tell me if my understanding is correct? Soland offers a service to loan stablecoins out. To do this, you need to provide some amount of their solana coin as collateral. Additionally, because it’s a loan they expect their initial stablecoin back, plus a little bit extra. So someone had a /lot/ of solana. They believed that they could make more money in some alternative coin, rather than keeping their existing solana. So they convert their solana into stablecoin using soland and buy some other coin using that stablecoin. Since then, the crypto markets have lost a lot of value. The chance that the lender can pay the loan back is very low. Additionally, there’s a clause that says if the price of solana goes below some amount, the solana used as collateral will be sold. Now, if the collateral is sold, it will introduce a huge supply of solana coin, which drives down the price. This feeds into the solana price dropping, which sells more collateral. A death spiral. To avoid this, the DAO is taking over the account and selling the coins prematurely, before liquidation happens. Is that right at all?