4/ As this position creeps closer to liquidation, it began to trigger fears that user funds could be put at risk.
Solana's recent instability lends itself to potential issues amidst a mass liquidation event. Additionally, user funds could be vulnerable due to high slippage.
5/ In response, @solendprotocol decided to reach out to the whale to negotiate a solution. They claimed that:
• The whale will always present a systemic risk to Solend and its users, and
• Letting a liquidation of this size to happen on-chain is extremely risky
6/ But the whale never responded, so Solend issued a proposal which intends to "grant emergency power to temporarily take over the whale's account so the liquidation can be executed OTC."
7/ The proposal was met with vast public backlash, as many claimed that the intervention directly combats the essence of decentralisation (I would largely agree).
9/ If we learnt anything from the Celsius and 3AC situations, it's that on-chain transparency is a much-needed component of the crypto financial ecosystem.
This is the exact problem that DeFi is intended to solve.
15/ The decision to invalidate the vote (although I believe it was the right one), raises another important issue:
What's the point of a DAO if proposal outcomes aren't adhered to?
16/ The initial proposal was a) fundamentally flawed, and b) far too easily manipulated by a singular party.
But in addition, cancelling the proposal invalidates the very authority a DAO claims to have.
A doubly whammy of decentralisation degradation.
17/ Despite all this uncertainty, @SBF_FTX declared that "real solutions are coming."
Many accused him of "saving his bags", as the timing of this tweet coincided with $SOL dumping. Until now, SBF has been quiet on the Solana front for months.
SocialFi will be one of the biggest narratives this summer.
Friend Tech's V2 launch + airdrop could kickstart a broader SocialFi season.
You still have the chance to be early.
🧵: My FULL guide to SocialFi (+ top picks).👇
In this thread, I'll cover:
• What is SocialFi?
• Friend Tech V2 & Airdrop
• Why SocialFi could be a strong trade in the coming months
• The specific SocialFi projects I'm watching (best proxy plays)
Let's dive in.👇
Firstly, what is SocialFi?
Social Finance, or SocialFi, combines the principles of social media with decentralised finance.
Simply put, it incentivises social media participation with crypto tokens.