Solanas Biggest DeFi Lender Is Leaning Into ‘Permissionless’ Loan Markets
Because of the way it’s set up, you can use Solend to leverage Solana and earn some very appealing returns. The crypto market is notorious for its high volatility, but the recent turbulent times have been worrisome even for the most experienced traders. Last week, Celsius froze operations for its users and this week, Solend, the decentralised crypto lending platform based on Solana and governed by its own DAO – Solend DAO, is the one in hot water. CoinCheckup provides live cryptocurrency prices and charts, listed by crypto market cap.
- The lending platform is helpful for people who just need a standard loan, but it’s also promising for investors.
- Another lending and borrowing protocol AAVE, which is the largest by capitalization among the mentioned ones, also shares very similar dynamics as $COMP.
- The decentralized finance company, based on the Solana blockchain, attempted to set up a playpen in order to try and avoid bankruptcy.
- The consul general had stepped out of a chauffeur-driven town car and directed the loading of his steamer trunks and suitcases.
The news left Solana users panic-stricken after it was revealed that a major crypto crash almost happened on the platform. In this article, we explore what Solend is, why the crash almost occurred, and what it means for other DeFi lending platforms. To begin with, the DAO had a very short time in which they could vote on the proposal. Outside of that, Solend supporters and observers raised concerns about the community being able to take over another individual’s wallet through governance. While other’s pointed out that the approved proposal was the anti-thesis of decentralization, especially since one wallet address was able to account for the lion’s share of the “yes” votes. The company claimed that a drop in the price of Solana , and the potential liquidation of the whale account, would leave it with “bad debt”, and would therefore put avoidable pressure on the Solana network.
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The website provides a list of cryptocurrency and blockchain related events, valid and authentic list of cryptocurrency wallets and Bitcoin mining pools. We also provide rich advertisement campaings to advertise your business on this website. Solana is popular due to its speedy transactions and low fees, so adding a lending protocol to it resulted in a lot of interest. The lending platform is helpful for people who just need a standard loan, but it’s also promising for investors.
There are many other crypto exchanges where you can trade Solend, but make sure to do your own research before making your choice. Lending protocols are providing great services to the DeFi world and Solend is providing them for Solana. TVL consists of deposits made to the protocol and like other lending protocols, borrowed tokens are not counted. In the last 24 hours, Solend has traded at a total of 0 in volume. During this time it’s price has fallen by 0.0% percent, and its price now stands at $0 per coin.
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Solend claimed that if the whale liquidations were to take place that the Solana network might go offline due to the amount of stress that would have been placed on the network. The problems began on June 18, when Solend disabled USDC and USDT borrowing to “help ease utilization to allow users to withdraw”; however, users began reporting that USDC withdraws were not working. The troubled platform will continue to stew in the pressure as the voting time for the new proposal received a one day extension. Celsius Network fell in trouble, and was forced to freeze withdrawals and other user operations in reponse.
BNB’s price dropped from $293 to $282 after the hacking news broke, though it had recovered slightly at press time. Check out CoinGeek’sBitcoin for Beginnerssection, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain. The Solend team was forced to put the decision to a new vote after the previously approved proposal was invalidated by a 1,480,264 votes (99.8%) in favor counter-proposal. Solend is apprehensive about SOL price dropping and the whale getting liquidated. In such a scenario, Solend may end up with bad debts, which will severely strain the SOL network. Leaderboard Top crypto tradersHelp CenterAnnouncements Latest platform updates regarding listings, activities, maintenances and more.
StETH is meant to be worth the same as ether, but it’s been trading at a widening discount to the second-biggest cryptocurrency. Moving in and out of stETH isn’t easy, and that’s resulted in liquidity issues at large crypto lenders and hedge funds like Celsius and Three Arrows Capital. Solend’s anonymous founder Rooter highlighted a whale wallet on Saturday that deposited 5.7M SOL to borrow about US$108 million https://cryptomessiahtoken.com/where-to-buy-solend-coin-guide/ worth of USDC and USDT on the Solend borrowing platform. Solend DAO on Monday voted to overturn Sunday’s decision that would have allowed the organization to take control of a whale wallet that could put the protocol at risk from a liquidation. It’s hard to clearly define Solend’s effect on SOL, since the two are so closely related. SOL was definitely on the downturn before the lending protocol disaster.
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