Thread by @JiangZhuoer

Solana-based lending and borrowing service platform Solend users voted to control a whale account, this is a typical unrealized market issue.
This whale owns 5.7 million SOL and each sol values $32, that’s equivalent to a total market cap of $180 million. #Solana

Due to an unrealized market cap, this $180 million market cap does not equal $180 million in real money.
However, thanks to crypto-backed lending, this whale was able to borrow $108 million in real funds against his 5.7 million Solana.
Please read:
b-topmining.medium.com/deep-analysis-…

Creating an unrealized market cap, and then exchanging it for your real funds is a very common capital operation, moreover, most people seem oblivious when they get fooled.

Forward from @WuBlockchain:
A whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE) has massive position of 5,701,814.69 Solana deposited and $108 million stable coins borrowed (USDC + USDT).

Their liquidation price is $22.29. The #SOL deposited of this whale account is currently 94.68% of the @solendprotocol Main Pool, and 86.26% of the debt.
The founder of Solend, Rooter has twitted and wished this whale to pay down their loan to avoid liquidation.

Meanwhile, he is preparing for the liquidation and stated that he would start with a partial liquidation capped at 20% of the outstanding borrows (about $21 million)

Given that most liquidators on Solend are bots programmed to use DEX liquidity, such sale will further reduce SOL price, causing other accounts to liquidate. Solend has a treasury with $20 million that can help repay bad debt, but in a worst-case scenario, this may not be enough.

Currently, the Soland is proactively trying to engage the whale to get them to reduce their position. At present, Solend has closed the borrowing service of #USDC, #USDT and #SOL on its Main Pool.

According to @WuBlockchain, Solend’s governance proposal has been passed by the community, 1.15 million votes approved (97.5%). This proposal supports Soland’s special margin requirements on the whale account, and grants emergency powers to Solend Labs to take over their account.