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.
The crypto market is about to catch A LOT of investors off guard.
Don't let that be you.
With Q4 right around the corner, there are some critical factors you NEED to know.
🧵: Here are 10 reasons why Q4 could spark a MONUMENTAL market shift.👇
This thread is going to break down the 10 most important factors that are set to impact the market in Q4.
It will be divided into 3 sections: Seasonality, Macro, and Crypto-Specific factors.
Let's dive in.
Firstly, let's discuss SEASONALITY.
Although market moves (on face value) may seem random, there is compelling evidence to suggest markets (especially crypto) are highly cyclical and are responsive to certain months/periods in the calendar year.