Solend introduces $50M borrow limit as whale account begins debt repayment

Solana-based DeFi protocol Solend start A new proposal to limit platform borrowing to $ 50 million per account. This is the third suggestion in the last few days as we are addressing the issue of liquidity.

The protocol aims to prevent future recurrence of these issues through new proposals to introduce account borrowing restrictions.

According to the details of the proposal, debt over $ 50 million will be liquidated regardless of the value of the collateral. However, the limit will be gradually reduced from $ 120 million to $ 50 million at $ 500,000 per hour.

In addition, the proposal includes temporary measures such as reducing the maximum clearing close factor from 20% to 1% and the SOL clearing penalty from 5% to 2%.

The new proposal has a 24-hour voting period, which Solend also calls a notice for borrowers to reduce their borrowing positions.

The protocol has recently been in the news about the first proposal to take over a whale account. The account had 95% of the Solend SOL pool’s funds after borrowing over $ 80 million.

Solend Whale Starts Loan Repayment

The official Twitter account of the team publication Early today, “3oSE … uRbE has contacted the team and is currently discussing mitigation.”

3oSE… uRbE has contacted the team and is currently discussing mitigation measures. Details will be shared shortly.

— Solend (adopted!) (@ Solendprotocol) June 21, 2022

Whale (3oSE …) has begun pay back debt Solend’s debt and collateral offering. As of June 21, a total of US $ 24 million has been repaid.

This address currently has a collateral of 4,501,945.77SOL and a debt position of 84,319,446.69 USDC + USDT.