Solend, the ecological lending protocol of Solana, released a new proposal SLND3, expressing that in order to solve the liquidation problem of giant whales, it is suggested that:
- Introduce a borrowing limit of $50 million per account, any debt exceeding this limit will be eligible for liquidation, regardless of the value of the collateral.
- Gradually reduce the borrowing limit from $120 million per account until it reaches $50 million, with a goal of reducing $500,000 per hour.
- Temporarily reduce the maximum liquidation coefficient from 20% to 1%, and limit the amount that can be liquidated in a single transaction.
- Temporarily reduce the liquidation penalty for SOL from 5% to 2%. Additionally, Solend is engaging with market makers to help provide better on-chain liquidity, and if approved, the proposal will go into effect as soon as possible.
Earlier news, on June 19th, the founder of the lending protocol Solend urged the giant whale users to repay their debts as soon as possible to avoid serial liquidation. On the same day, the Solend community first passed the proposal to set special margin requirements for giant whales and temporarily take over the whale account. SLND1, yesterday, the Solend community repealed the above proposal in the proposal SLND2.
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