Solend decided to get rid of the position of the largest clientcriptocreditor Solend, working on the Solana blockchain infrastructure, decided to get rid of its largest client due to concerns about the security of the entire platform, CNBC writes.
We are talking about one of the so—called “whales” – major players in the cryptocurrency market. In this case, it accounts for about 95 percent of all Soland deposits, which are sol tokens purchased in advance for Ethereum. Such a mechanism is practiced by DeFi services (decentralized financing services) and allows them to link the stablecoins they issue (in this case, the USDC stablecoin) to traditional fiat currencies.
At the same time, this user borrowed $108 million in USDC stablecoins, as well as in Ethereum. The founders of Solend are afraid that conducting large transactions by them could lead to the collapse of the entire platform and the decoupling of the USDC from the dollar, which already happened in the spring with the Luna cryptocurrency and TerraUSD stablecoin.
As a result, Solend administrators granted themselves extraordinary rights to manage customer accounts, primarily the largest “whale”. This was an unprecedented event in the cryptocurrency industry and allowed some experts to talk about the imminent collapse of DeFi.
In turn, the creators of Solend claim that they are going to gradually eliminate the position of the largest user through over-the-counter transactions in order to avoid sharp fluctuations in the rates of sol and USDC.