DeFi Protocol Solend Passes Governance Vote to Reverse ‘Emergency Powers’

Solend, a lending protocol based on Solana, has passed governance proposal SLND2 that invalidates the controversial “emergency power/” proposal from Sunday. It will also give the team time to take less drastic measures on a large on-chain liquidation.

• The anonymous wallet at the heart of the crisis had deposited 95% of Solend’s entire SOL pool and represented 88% of USDC borrows. But Solend’s single-largest user came dangerously close to a massive margin call with SOL’s cratering price. If SOL hit $22.30, the protocol would automatically liquidate up to 20% of the whale’s collateral.
• The SLND2 proposal, as well as invalidating the previous proposal, also increases governance voting time to one day.
• SLND2 received 1,480,264 “yes” votes and 3,535 “no” votes with a majority of 99.8%. One wallet paid $700,000 for additional voting power, ultimately making up 90% of votes.
• The Solend team will now “work on a new proposal that does not involve emergency powers to take over an account,” according to the company’s blog.
• “We recognize that a voting time of 1 day is still short,” a blog post by co-founder Rooter said, “but we need to act swiftly to address the systemic risk and fact that normal users can’t withdraw USDC.”

Read more: Solend’s Whale Liquidation Crisis Prompts Second Vote to Reverse ‘Emergency Powers’