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A per-account borrow limit of $50 million will be imposed, according to Solend’s new governance proposal amid the liquidity crisis; The protocol will also temporarily CryptoSlate is hiring for a handful of positions!Solana-based DeFi protocol Solend has initiated a new proposal to limit the borrowing on the platform to $50 million per Solend’s SLND3 Proposes the Following: Put a per account maximum borrowing cap at $50 million. Regardless of the collateral value, any debt above this will be Solend, the ecological lending protocol of Solana, released a new proposal SLND3, expressing that in order to solve the liquidation problem of giant whales, it is Solend plans to limit the liquidation per transaction by a factor of 20. This means the maximum liquidation close factor per transaction will reduce from 20% to 1%. Proposals put forward include: Introduce a per-account borrow limit of $50M. Any debt above this limit will be eligible for liquidation, regardless of collateral value; Roll this

Solana Solend Proposal Aims to Minimize Max Liquidation, Introduces $50 Million Borrow Limit

Solana-based DeFi protocol Solend has initiated a new proposal, SLND3, designed to minimize maximum liquidation events and address the liquidity crisis. This critical update comes as Solend, the ecological lending protocol of Solana, seeks to protect its users and stabilize the platform.

A Per-Account Borrow Limit of $50 Million: According to Solend's new governance proposal, a per-account borrow limit of $50 million will be imposed. This significant change means that regardless of the collateral value, any debt exceeding this limit will be eligible for liquidation. This is a direct response to concerns about giant whales and their potential impact on the protocol's stability.

Solend's SLND3 Proposes the Following:

  • Put a per account maximum borrowing cap at $50 million. Regardless of the collateral value, any debt above this will be subject to liquidation.

The protocol will also temporarily implement measures to limit liquidation per transaction. Solend plans to limit the liquidation per transaction by a factor of 20. This means the maximum liquidation close factor per transaction will reduce from 20% to 1%. This reduction in liquidation size aims to mitigate the risk of cascading liquidations and further stabilize the Solana ecosystem.

The key proposals put forward include:

  • Introduce a per-account borrow limit of $50M. Any debt above this limit will be eligible for liquidation, regardless of collateral value; Roll this

These changes are designed to bolster the long-term health of the Solend protocol and protect users from extreme market volatility. As the Solana DeFi landscape evolves, Solend's proactive measures are a crucial step towards a more stable and resilient ecosystem. Stay tuned for further updates and developments.

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