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Solend seized $170M of user funds
51–60 of 221 posts
Re: Solend seized $170M of user funds
#52Maybe Solend is short for Solana-end
Re: Solend seized $170M of user funds
#53One 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 propo…
Not to be super “arm chair psychologist” about this, but I always thought the whole “you deserve it if you got scammed” mentality comes from the people that believe crypto will replace all modern finance. For crypto to replace modern finance, it needs to be better in every way (so it’s a total replacement). Decentralized currency is better for some things, worse for things like preventing scams. If modern finance pre…
>it needs to be better in every way
It only needs to be better in enough ways to persuade enough people to adopt it such that it hits a tipping point and becomes the de facto standard.
Re: Solend seized $170M of user funds
#54One 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 propo…
DYOR = watching 10 min vids from influencers pumping up shitcoins, hanging around in various discord or telegram echo chambers, skimming through whitepapers you don't understand.
Re: Solend seized $170M of user funds
#55A smart contract can be upgraded to take over a whale’s account? How is that a thing? I remember the whole “code is law” on the chain, rather than trusting escrow/third party/judges >Grant emergency power to Solend Labs to temporarily take over the whale’s account so the liquidation can be executed OTC and avoid pushing Solana to its limits. This would be done via a smart contract upgrade. Emergency powers will be re…
>I remember the whole “code is law” on the chain, rather than trusting escrow/third party/judges
Yeah, but in this case the code is law, it's just that the code in question also says that it can be modified by a majority vote.
Re: Solend seized $170M of user funds
#56Sorry, 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 sei…
I'm only surprised why would the Solend team care about crashing the price of Solana. Why would the Solana care either for that matter (I don't know if they are the same people though). If it crashes because of a sudden bulk market liquidation then it is just working as intended, and eventually the price of SOL will recover if there is user confidence.
It might not have a lot to do with price. The Solana network itself is too fragile to handle a liquidation like this. They're trying to keep the network from crashing. Needless to say, the network has one job, and it keeps failing miserably.
Solana goes dark for the seventh time in 12 months - https://www.cryptopolitan.com/solana-why-is-solana-down/
Re: Solend seized $170M of user funds
#57How did the "whale" have so much invested in the market but such little voting rights?
They don't have voting rights because they don't have SOL. They don't have SOL because they put it in there to get USDC+USDT. If they don't believe in the depth of the SOL/USD(C|T) books this could just be a way to sell SOL or go short SOL. This whale is probably just happy to default on the loan and get liquidated at this point.
Are they in the red on the loan? The numbers and functions are where I get confused.
"a whale has deposited 5.7M SOL ($170M and borrowed 108M USDC and USDT borrowed)"
So they put in 5.7 SOL at some price, and used it to borrow stablecoins? If their position is liquidated how does that play out? If he traded coin for coin how do they get the traded assets back?
Re: Solend seized $170M of user funds
#58One 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 propo…
Not to be super “arm chair psychologist” about this, but I always thought the whole “you deserve it if you got scammed” mentality comes from the people that believe crypto will replace all modern finance. For crypto to replace modern finance, it needs to be better in every way (so it’s a total replacement). Decentralized currency is better for some things, worse for things like preventing scams. If modern finance pre…
The pro-crypto folks have created the delusion that 'crypto will replace all modern finance' and they will quickly realise that regulations will wipe out the majority of tokens and projects unable to comply with them; and a remaining few of them existing and surviving.
It also means the anti-crypto folks will also realise that destroying 'all of them' is another delusion that activists like the free software foundation for example who's mission is still to remove all non-free software in existence. After 37 years, its still here and it is co-existing with some open-source software.
The undeniable fact is that regulations will be put in place for crypto and only a surviving useful few will continue to co-exist with the current system which both the anti-crypto folks and pro-crypto maximalists will be disappointed in achieving their utopian ideals.
Re: Solend seized $170M of user funds
#59Crypto has been an interesting experiment in rediscovering the reasons for all the financial regulations which we developed for regular currency in the late 19th and early 20th century.
Re: Solend seized $170M of user funds
#60Sorry, 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 sei…
A better title would be "Solend seized $170MM of user funds". Claiming it was done by "Solana" is incorrect. Claiming it's to prevent a drop in Solana's price is clickbait & editorializing.
Ok, we've changed the title to that. (Submitted title was "Solend just seized $170MM of user funds to prevent a decrease in Solana's price".)
If someone suggests a better title (i.e. more accurate and neutral, preferably using representative language from the submitted article), we can change it again. And if there's a better URL than the Reddit thread, we can change that too.