SOL whale transfers $25 million in USDC debt from Solend Mango Markets

22-Jun-2022 By: Shikha Jha

SOL whale transfers $25 million in USDC debt from Solend

to Mango Markets

The Solana (SOL) whale that was at risk of being taken over following a recent vote on Solend governance has contacted the lending protocol and relocated USD Coin (USDC) debt totaling $25 million to Mango Markets.

The whale has moved their position across many lending methods, as suggested by the team, according to a tweet from Solend. By doing this, Solend will utilize less USDC, letting its users to withdraw their funds once again.

In addition, the lending protocol won a second governance vote that would reduce the account borrow limit from the present $120 million USD to $50 million, a considerable reduction. Regardless of the value of the collateral, debt that exceeds the newly established ceiling will be subject to liquidation.

The Solend lending platform came under fire on June 19 for its SLND1 governance vote, which intends to seize control of the whale's wallet in order to reduce risks. The outcome of the voting was 97 percent in favor. However, due to the fact that the action goes against decentralization's tenets, it has drawn much criticism.

After receiving unfavorable comments about the previous decision, the lending platform chose to hold a second governance vote to invalidate SLND1. The second proposal, which disregarded the wallet takeover plan, received 1,480,264 votes in favor.

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