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Somebody had a very large amount of Solena. They took out some sort of loan (getting other cryptocurrencies) using their Solena as collateral. This would have b
by physicsguy 4y ago
Somebody had a very large amount of Solena. They took out some sort of loan (getting other cryptocurrencies) using their Solena as collateral. This would have been for less than the face value of the Solena. It was quite obvious that they then planned to default on this loan and they were using it to exit their position. This would mean that whoever lent the other cryptocurrencies would take control of that Solena and try and sell it. There was very low liquidity, soo much that if they tried to sell it, it would crash the price (which is based on recent-ish sales and isn't really accurate as a result) - hardly anybody was buying Solena, so the price as is didn't reflect what would happen if a large amount went up for sale.
Solend realised this, and took a vote on seizing this amount (effectively removing the tokens from the owner's ownership and preventing them from exiting their position) requiring only 1% of token holders to approve. The vote passed. Now they've backtracked.
- gst 4y ago> Solend realised this, and took a vote on seizing this amount (effectively removing the tokens from the owner's ownership and preventing them from exiting their position) requiring only 1% of token holders to approve. The vote passed. Wouldn't it be in Solana's interest to continue being used as collateral? Why would anybody continue accepting Solana-based collaterals if funds can be seized at will?
- vgatherps 4y agoSolana’s only involvement is being the blockchain. They can’t do much about it other than pressure the team to make decisions one way or the other, or try and convince validators to rollback and fork the network like with the eth hard fork
- joshuaissac 4y ago> Why would anybody continue accepting Solana-based collaterals if funds can be seized at will? The creditors might get back less money than they lent to the whale if the whale defaults and the creditors have to sell Solana. So doing nothing is not great for them, either.
- egorfine 4y agoSolena as in Solana or Solend? Sorry for nitpicking but the word "Solena" could be a mistype of both "Solana" and "Solend".
- robertlagrant 4y agoSee the link. Looks like Solend.
- davidkpham 4y agoThey meant Solana. Solana in this context is a coin/cryptocurrency like USD. Solend is an app/project.
- alfiedotwtf 4y agoCode is Law* > Solend realised this, and took a vote on seizing this amount (effectively removing the tokens from the owner's ownership and preventing them from exiting their position) requiring only 1% of token holders to approve. The vote passed. * big fucking asterisk
- alisonkisk 4y ago