After Celsius and 3AC tanked the market, another concerning event has started to emerge.

With nearly a billion dollars of liquidations on the line, the price of one of crypto's largest L1s is at stake.

🧵: What's happening to $SOL and @solendprotocol, and why you should care.👇
2/ Right now, there are three major liquidations I've got my eye on. $778m worth of positions across $wBTC, $SOL and $ETH.

3/ But the $SOL situation is by far the most intriguing, and has sparked intense debate. Here's a break down of what's occurring: 👇

A $SOL whale deposited $160m on @solendprotocol to borrow $108m.

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."

realms.today/dao/7sf3tcWm58…
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).

@el33th4xor (founder of $AVAX), @FatManTerra and @Coachkcrypto challenged the proposal.

8/ @cobie labelled the $SOL situation "comedy", with @cz_binance also seemingly questioning the decision.

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.

11/ But despite the backlash to the proposal, 97.5% voted "Yes".

This is where things get interesting. 👀

12/ It turns out that over 90% of the votes were issued by a single user.

The fate of $270m in user assets are effectively being decided by a single entity.

This is a fundamental flaw in the system, as voting power is decided by your DAO holdings.

13/ This resulted in further division amongst the community.

@solendprotocol quickly rushed to fix their mistake, by INVALIDATING vote #1, and instead issued a NEW proposal to:

• Invalidate the last proposal
• Increase governance voting time to 1 day

blog.solend.fi/slnd2-invalida…
14/ The voter took to Discord to justify their position.

They claimed that they'd rather salvage "$120m of retail dollar instead of holding up DeFi ethos for some whale that is degenerately gambling.."

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.

18/ So what does the Solend situation mean for $SOL?

Once again, it highlights the network's centralisation concerns.

Controlling user funds is a big no no, and goes against the essence of decentralisation.
19/ In terms of the implications, this event negatively affects @solendprotocol more so than $SOL itself.

$SOL remains largely unharmed (although I'd still keep my eye on the $22.30 level).

But, it does highlight the increasingly relevant argument of decentralisation.
20/ This is the classic case of need vs want in crypto. What we WANT is decentralisation, but what we NEED (in this case) is user protection.

Striving for a healthy balance between the two is what we need to progress as an industry.
21/ If you enjoyed this thread, please give the 1st tweet a like and retweet. 💙

22/ UPDATE 1:

The $SOL whale is now in contact with the @solendprotocol team to work on a solution.
23/ UPDATE 2:

The whale has started to move funds.

This involves spreading liquidity across multiple lenders.

The liquidation wall still exists, but alleviates pressure from Solend.

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More from @milesdeutscher

Jan 29
2023 is shaping up to be a HUGE year for airdrops.

In recent years, people made up to:
• $50k on $OP
• $30k on $ENS
• $18k on $UNI
• $6k on $APT

But there are many more opportunities around the corner.

🧵: 20 upcoming airdrops that I've got my eye on. 👇
There are very little cases in life where you can earn hundreds (or thousands) of dollars for very little effort.

Airdrops are one of them.

And although it may cost a bit of time and patience, in the long run it's well worth it!
This thread will focus on 20 airdrops, which I believe are the "pillars" that you should be aiming for this year.

I'll be releasing more threads on smaller ecosystem airdrops in the future.

This list is in no particular order. Let's dive in! 👇
Read 30 tweets
Jan 26
Have been learning a lot about trading recently.

I’m going to be testing my skills (or lack thereof 🤣) in the $GNS trading competition.

It’s live now with $100k in prizes up for grabs.

If you wish to support me, you can use my link to trade: gains.trade/referred?by=mi…
More details about the competition if you’re interested:
To be clear, I split up my portfolio into a few categories:

• Long term investing
• Short-medium timeframe investing
• Active trading

I trade with <10% of my portfolio.

How much you allocate depends on your risk tolerance/goals/skill etc.
Read 4 tweets
Jan 24
Pantera Capital just released their 2023 outlook report: "The Year Ahead".

It's packed full of alpha.

I read through its 10,000 words so you don't have to.

🧵: Here are the top 10 takeaways. 👇
This thread will be broken up into 5 parts:

1. Crypto Market Outlook: @joeykrug
2. State of Blockchain Venture: @veradittakit
3. BlockChain Infrastructure: @_will_reid
4. Structurally Safe DeFi: @chiajy2000
5. @PanteraCapital's 2023 Fund Overview
-- CRYPTO MARKET OUTLOOK by @joeykrug --
Read 34 tweets
Jan 22
Many of next cycle's top performers haven't been released yet.

These projects have potential to 50-100x next bull run.

The next $SOL or $MATIC could be sitting right in front of you.

🧵: Here are the top 13 unreleased projects I'm most looking forward to. 👇
In this thread, I'll break down my favourite unreleased layer 1s, layer 2s, interoperability protocols and dApps that I've got my eye on for next cycle.

At the end, I'll give you 4 steps to take advantage, as none of these projects have tokens *yet*.

Let's dive in!
-- LAYER 1s --

1. @SuiNetwork

Sui is a high performance L1 which uses the Move programming language.

It was founded by former FaceBook engineers, who worked on the now defunct Diem project.

Here's all you need to know:
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Jan 18
I recently interviewed @hosseeb, Managing Partner at @dragonfly_xyz. I was blown away.

Over an alpha-packed 73 minutes, we discussed:

• The future of L1s and L2s
• Haseeb's top 3 narratives for 2023
• $BTC vs $ETH

and more.

🧵: Here are the 12 most important takeaways. 👇
1. 2022's biggest lesson: The importance of paying attention to mechanism design.

"In the long run, you cannot escape mechanism design."

"If you're creating something that doesn't net create value, it's not gonna work, it doesn't matter how big you scale it."
2. Ethereum is superior to #Bitcoin in the eyes of institutions, as it's more ESG friendly.

"If you want a trillion dollar coin, you're not going to get there off the back of retail."

"Ethereum is really the only game in town if you want institutional buyers."
Read 18 tweets
Jan 2
11 Crypto Predictions For 2023. 🧵👇
These predictions are being made from the outset of 2023.

It's likely as the year progresses, things will change regarding the macro and regulatory environment - creating new narratives (as well as affecting existing ones).

But I thought it would be fun to try anyway!
1. $ETH Dominance hits 23%.

It hasn't reached these levels since 2018.

But, I don't think the full extent of the merge is priced in.

I predict $ETH will maintain relative strength vs the market and $BTC for the majority of 2023 and into 2024.
Read 15 tweets

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