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Lending app tries to take over 'whale' a/c to halt crypto collapse

Mounting Crypto Liquidations Make DeFi Go to Extremes: Industry fears contagion as Bitcoin struggles to keep above key level of $20,000

bitcoin, cryptocurrency

DeFi apps — in which users can trade, borrow from and lend to each other — are suffering because they tend to be interconnected.

The record-setting rout in cryptocurrencies has put a slew of decentralised-finance (DeFi) applications and their communities in a race to protect themselves against a cascade of liquidations — sometimes by employing unprecedented measures.

On Sunday, token holders of Solend, a lending app on the Solana blockchain, voted to temporarily take over a so-called “whale” investor that it said could significantly influence market movements, an extreme move for DeFi that appears to be a first. That decision was reversed in a second vote on Monday.  

That all took place after MakerDAO, an app that supports stablecoin DAI and is run by a crypto

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First Published: Jun 20 2022 | 11:19 PM IST

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