Solend seized $170M of user funds

There is some more analysis/coverage here: https://twitter.com/FatManTerra

> The Solend team just confirmed to me that when this change is implemented, the whale will instantly be partially liquidated down to a safer ratio. SOL is $32 but his current liquidation price is only $22. On the fence about the main proposal, but I do not agree with this part.

This is messed up.

defi at its best. zero upside of centralized finance with all the downsides, after all.

One of the themes in pro-crypto writings has been the idea that as long as you “do your own research” then the bad things won’t happen on your chosen cryptocurrency. The prevailing idea (among pro-crypto spaces) is that bad things only happen to other people who deserve them because they didn’t do the right research.

Recently we’re seeing the bad things happen in more and more mainstream chains. Even famous NFT proponents have been losing their NFTs to scams at a shocking rate. I wonder if this will drive people back to simpler chains like Bitcoin, or if we’re going to see enough bad things (including crashes) that it just sucks the enthusiasm out of the crypto space entirely.

Sorry, I've read this again and now I think this has little to do with Solana and entirely to do with Solend, and I think they're separate. Maybe someone who knows more about the space can clarify things. I now presume the funds needed to be deposited in Solend's smart contract in order for the trader to borrow the funds against his collateral, and Solend is pushing a patch in order to modify the code so they can seize the funds that are held within their own smart contract. So the Solana team may be totally innocent. But it's still news, because Solend doesn't look much like a "decentralized" lending platform where no one can seize your funds if they can seize your funds and modify the loan and partially raise the liquidation price, and I assume this is the biggest market on Solana. It's quite reminiscent of the ETH split / DAO hack.