Solana whale moves $25M of USDC debt from Solend to Mango Markets

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The Solana Whale (SOL) that was potentially taken over by Soland’s recent verdict vote has approached the lending protocol and transferred a debt of $25 million in USDC coins to Mango Markets.

In a tweet, Solend shared that the whale acted on the team’s suggestion to move its location through various lending protocols. The law reduces the use of USDC within Solend, allowing its users to withdraw their assets again.

While this move appears to be a band-aid solution to a larger filtering problem, the Solend team made it clear that they are working with Whale and Team Mango to find a long-term solution to the underlying problem.

Apart from this, the lending protocol has also passed another management vote that will significantly reduce the account’s borrowing limit which currently stands at $120 million to $50 million. Debt in excess of the new limit will be subject to liquidation regardless of its security value.

The protocol also reduced the amount that could be liquidated in a single trade by lowering the maximum liquidation close factor to 1%. It also reduced Solana’s liquidation penalty from 5% to 2%. Both reductions are temporary and may change once the condition of the whales is addressed.

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On Sunday, lending platform Solend received criticism for its SLND1 vote aimed at acquiring the whale portfolio to mitigate risk. The vote closed with a 97% approval rating. However, it has received many criticisms because this move goes against the principles of decentralization.

Due to the negative feedback caused by the initial move, the lending platform decided to hold a second governance vote to invalidate SLND1. The second proposal was approved, gathering 14,80,264 votes in favor of ignoring the portfolio acquisition plan.

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