What decentralization? Solana lender Solend approves whale wallet takeover to avoid DeFi implosion
On Sunday, the decentralized finance (DeFi) sector came under scrutiny again after Solend, a popular DeFi protocol on (SOL), put together a spur-of-the-moment governance proposal related to one of the whale wallets at risk of liquidation.
The proposal, dubbed “SLND1 : Mitigate Risk From Whale,” was abruptly launched on Sunday without announcement and the vote closed with a 97% approval rating. The scandal comes on the heels of last week’s sudden layoffs from Coinbase (NASDAQ:) and BlockFi, and the liquidation debacle of Three Arrows Capital. Adding to the melee of unexpected volatility and market sell-offs, the spur-of-the-moment alterations of a supposed decentralized autonomous organization, or DAO, show that crypto is not as “decentralized” as its users may have thought.