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Miles Deutscher Profile picture
@milesdeutscher
Jun 20, 2022 • 23 tweets • 9 min read • Read on X
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.

10/ Even @SBF_FTX agrees with this sentiment.

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

Miles Deutscher Profile picture
Oct 28
If you want to make serious money in crypto over the next 6 months,
these are the 10 narratives you can’t afford to ignore.

Altcoins aren’t dead - but the opportunity has moved.

You just need to know where to look.

🧵: The top 10 narratives in crypto right now.👇
How to use this thread:

Each tweet is long-form, so I recommend reading the entire thread and bookmarking the most interesting tweets/sectors to dive deeper.

In each tweet, I explain:

• My thesis
• Alts I'm researching
• Tools to help you dive deeper

Pick 2-3 of these narratives and go DEEP if you want to extract an edge.
1. AI/Agents

If you've been following me for a while, you'll know how vocal I've been on AI's potential in crypto.

We saw some promising use cases earlier this year, but nothing has truly materialised yet. I think that's about to change.

One subsector of the AI narrative that is particularly interesting is AI agents.

The AI agent sector had one of the most aggressive runs earlier this year, and it's showing early signs of strength once again.

The catalyst this time - x402.

Essentially, x402 is like adding a wallet to the internet. It’s a new web standard that lets a website say, “hey, before i give you this data, send me a small payment.”

x402 turns an old unused code into something powerful:
a way for websites, apps, or APIs to get paid instantly, without accounts, subscriptions, or middlemen.

(explanation by @SuhailKakar).

This new narrative is just one example of proper product-market fit enabled by AI agents; they have a ton more real-world PFM use cases (trading, automating research, etc.).

One of the best resources for tracking this entire sector is @cookiedotfun- they have a specialized AI agent-tracking dashboard to make sure you don't miss any hot AI agent opportunities.

Some projects I'm watching within the AI agents sector specifically: @HeyAnonai, @cookiedotfun and various lower cap plays on VIRTUALS. It's still a nascent sector, so there will be many more in the future.

In the broader AI narrative, I'm watching these majors: $ATH, $TAO (plus eco), and $WLD.

(I'm constantly adding new low caps + researching so make sure to follow me @milesdeutscher to stay in the loop).Image
Read 14 tweets
Miles Deutscher Profile picture
Sep 29
Missed $ASTER, $XPL & $APEX?

The good news is - we're seeing an airdrop renaissance (and it's never been easier to capitalise).

Over the past week, I've been building a watchlist of the biggest airdrop farming opportunities.

🧵: My Ultimate Q4 2025 Airdrop Farming Guide.👇
I've been refining my personal strategy to capitalise on these upcoming opportunities, and today, I'm sharing the full playbook with you.

In this thread, I'll break down:

• My Top 5 airdrops to farm
• The different strategies to use
• How to find big airdrops yourself
1. @Plasma

Probably one of the best ecosystems to farm in crypto right now, especially if you're stablecoin heavy.

This video from @phtevenstrong does a great job at summarising the best strategies.
Read 13 tweets
Miles Deutscher Profile picture
Sep 3
I spent the last week testing Gemini for crypto research. It blew my mind.

It unlocked a level of analysis and automation I didn't think was possible - and is now a staple in my research stack.

🧵: Here are 5 Gemini tools that will change the way you research crypto.👇
I've been deep in the AI rabbit hole recently.

More specifically, I've been exploring ways to automate/streamline my crypto research process using LLMs.

While ChatGPT and Grok are strong, Google's Gemini recently surprised me the most.
1. Crypto YouTube extraction

One of the things that makes Gemini unique is its seamless YouTube integration, as it is built into Google Workspace.

Crypto YouTube is packed with alpha, but watching videos can be very time-consuming.

Gemini fixes this, saving hours of research time.
Read 14 tweets
Miles Deutscher Profile picture
Aug 20
This crypto price action has many people confused.

Is the bull market still on? Is "alt season" still happening? Has $BTC topped?

🧵: Why I believe we'll look back on August as a MASSIVE trap. Here's what really comes next.👇
To understand what's next, firstly we have to map out the current dynamics at play.
1. $BTC vs $ETH strength

For the first time in a while, ETH seems to have the upper hand on Bitcoin both in terms of price action and narrative.
Read 17 tweets
Miles Deutscher Profile picture
Aug 19
Michael Saylor built the craziest $BTC flywheel in history.

But his buying power is starting to fade.

The market is now asking one question:

🧵: Is the $BTC treasury bubble finally popping?👇
In this thread, I'll break down:

• The software company funding the gamble
• The mNAV "death spiral" risk
• Whether I think the concerns are justified
• The DAT capital rotation into $ETH

Let's dive right in.👇
1. $MSTR valutation & mNAV paradox

People often overlook that @MicroStrategy has a legacy software business, which continues to generate revenue.

However, MicroStrategy has essentially become a company whose valuation is primarily influenced by its $BTC holdings.
Read 21 tweets
Miles Deutscher Profile picture
Aug 15
How I use AI to track CT and find early altcoin alpha.

I recently started doing this, and it's unlocked an entirely new trading edge.

Today, I'm sharing that strategy with you for free.

🧵👇 Image
I've tried a lot of AI tools for tracking sentiment/minshare across X.

Grok 3, ChatGPT, and even Gemini, but none could accurately pull data.

Finally, after the release of Grok 4, Grok now has all the integrations needed to track X posts.

Let me show you exactly how.
Firstly, you'll need access to SuperGrok.

The easiest way to gain access is through an X subscription and opening SuperGrok directly within X on the web. Image
Read 13 tweets

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