BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Solana Freezes a SOL Whale’s Account to Prevent Further Liquidation

by Dalmas Ngetich
Jun 20, 2022 - 12:00 am
in Blockchain
Solana Freezes a SOL Whale's Account to Prevent Further Liquidation

On the 18th of June, it was reported that a certain whale on the Solana network faced the risk of liquidation. The whale address borrowed $108 million worth of USDC and USDT while depositing $170 million worth of SOL as collateral.

🚨BREAKING: $SOL Is about to get liquidated

A whale has deposited 5.7M SOL ($170M and borrowed 108M USDC and USDT borrowed

And to prevent this they are proposing to literally steal the user's funds and execute OTC trades: pic.twitter.com/35sLjOsbg8

— Dagnum P.I. (@Dagnum_PI) June 19, 2022

The transaction was done on Solend, the largest Solana DeFi platform, and the amount borrowed was worth more than half the funds of all other borrowers combined. However, as the prices of crypto assets tanked, the whale risked losing a huge portion of his funds.

Solana traded as low as $27 on Friday, with the Whale’s liquidation price being around $22. Notably, though, Solend has a liquidation penalty of 20%, and liquidation on the DeFi protocol would have been in stages.

Solend Labs Requests for an Emergency Control

The expected liquidation caused a lot of panics, and a call was made for the whale’s funds to be handled by Solend. The governing body of the Solana ecosystem was to vote for or against a transfer of emergency power to Solend so that the trade could be handled over the counter.

The proposal was made to prevent a further crash in the price of SOL, as an on-chain liquidation of millions of dollars would drive SOL’s price further down.

The governing members voted in support of a temporary transfer of control. One address, in particular, accounted for 90% of the voting weight and supported Solend Labs’ proposition. This attracted lots of criticism to the SOL network, as crypto fans question its decentralized framework.

The saga also stirred proponents of the proof-of-work consensus algorithm to further criticize the proof-of-stake consensus. Although the PoS consensus is meant to achieve decentralization, activities on some protocols based on this model have not reflected actual decentralization.

Amidst the initial panic, crypto prices recovered from their lows at weekend. Solana token (SOL) which traded below $30 on Friday, now trades above $35. The liquidation scare has been temporarily avoided, and Solend Labs now have the power to minimize possible damages if the price of SOL tanks again.

Tags: CryptoSOLSolana
Dalmas Ngetich

Dalmas Ngetich

His primary focus is on technical analysis (crypto is, obviously, *not* crypto without the twirls of price action), the magic of DeFi, and NFTs. He is specifically training his eyes and effort on DeFi—and how the tech is changing investment, opening up opportunities for everyone—and the possibilities of NFTs.

Related Posts

Crypto traders favoring Europe’s MiCA regulation over US uncertainty

Despite Trump’s Support, Crypto Firms Flock to MiCA Over US Regulations

June 22, 2025

Europe draws crypto momentum under MiCA, while US retail interest falls despite Trump’s backing and lack of clear...

creenshot of fake CoinBridge crypto exchange linked to $860K scam

Florida Investor Scammed Out of $860K by Crypto Trading ‘School’ and Fake Exchange

June 22, 2025

Fake crypto school and exchange scammed a Florida man out of $860K through fake trade signals and phantom...

Young South Korean man trading cryptocurrency on a laptop in a small apartment

South Korean Youth Turn to Crypto Amid Economic Desperation

June 20, 2025

South Korea’s youth are embracing crypto not for belief in blockchain, but due to rising housing costs and...

AgriFORCE's Bitcoin mining site in Alberta powered by stranded natural gas

AgriFORCE Powers 120 Bitcoin Mining Rigs With Stranded Natural Gas in Alberta

June 19, 2025

AgriFORCE powers 120 Bitcoin miners with stranded gas in Alberta, eyes two more sites. It may keep 50%...

Press Releases

image2

Could XYZVerse Overtake DOGE and SHIB? Analysts Say $0.003333 Could Explode to $10!

March 30, 2025

XYZVerse aims to outpace DOGE and SHIB, with bold $10 price goals, strong community rewards, and rising demand as it...

image1 1

Massive Institutional BTC Buys Could Launch the Next Bull Market: 5 Altcoins to Watch

March 29, 2025

Institutional Bitcoin buys may trigger a market surge. Five altcoins, including $XYZ, stand to gain—early investors could see major ROI...

image1

XRP Faces Strong Resistance While XYZVerse Gains Early Investor Attention With 10 Billion $XYZ Airdrop

March 28, 2025

XRP struggles at resistance, while XYZVerse grabs early investor attention with a 10B token airdrop and rapid growth toward a...

BTC

Popular Memecoin MEW Pledges $10,000 to Pasadena Humane Organization to Aid Animals Affected by California Wildfires

January 20, 2025

MEW memecoin donates $10K to Pasadena Humane for wildfire-affected animals. Join the mission to aid pets and wildlife in crisis...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise