Solana’s DeFi platform Solend was affected when its single largest user with $107 million in USDC borrowed against $170 million in SOL collateral, bringing it almost to liquidation.
Solend’s total value has fallen 10% in the last week and 60% in a month, while Solana DeFi lenders like Larix, Hubble, and Oxygen have improved. Mango Markets has received a bigger share of the whale redistribution.
The announcement comes amid a cryptocurrency market crash that affected the DeFi platforms, decentralized governing platforms that affect users long-term.
Solend’s smart contracts automatically transfer liquidation sell orders to DEXs when user collateral falls too low. They determine if the trade will crash the markets or the chain.
Most DeFi platforms place code changes up to the ecosystem, with the token holders getting a vote on a new listing. Solend had not had a DAO vote before but proposed an SLND1 where the vote passed by 97.5% with just enough participation to get to the 1% quorum.