Binance helps fend off potential crash of Solana-based lender

Crypto exchange giant Binance has helped fend off a potential crash of Solend – one of the major decentralized protocols for lending and borrowing on Solana – after sending a message to the biggest whale on the latter’s platform with US$107 million in USD Coin borrowed, CoinDesk reported.

The account holder needed to reduce their position or shell out more collateral to avoid impending liquidation. However, the user went dark. After Binance established contact with the user – which followed several attempts on multiple channels by Solana and its supporters – they redistributed the amount to decentralized finance platforms like Mango Markets.

“I’m sorry that this issue has caused concern in the Solana community and with the Solana team,” the user wrote in an email to Solend’s founder, who is simply known as Rooter. The Solend user borrowed the triple-digit million amount against US$170 million worth of SOL, Solana’s native token, as collateral.

If the Solana whale hadn’t resurfaced, it would have been “basically over” for Solend, with its users losing “a ton of money,” Rooter said.

To help repel this outcome, Solend previously proposed to its community to temporarily take over the whale’s account. The proposal, called SLND1, was overturned, as users looked to remove Solend’s emergency powers to take over a user’s account.

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