A crypto lending app attempted to capture a ‘whale’ account to prevent the system from collapsing

Jacob Porziki | By Norfoto | Getty Image

Decentralized finance platforms are going to great lengths to limit sale-off results in cryptocurrencies.

What is Soland?

Soland is a Defi app that allows users to borrow and lend funds without intermediaries.

Soland said a single whale is sitting in a “very large marginal position”, potentially putting the protocol and its users at risk.

“In the worst-case scenario, Soland could end up with bad debt,” the firm said. “It could cause chaos, and put pressure on the Solana network.”

There were 5.7 million deposits in the respective accounts sol Tokens in Soland, accounting for more than 95% of the deposit. In contrast, Stablecoin was borrowing $ 108 million from USDC and Ether.

DeFi apps under stress

The move sparked a backlash on Twitter, with some questioning Soland’s decentralization. One of the key principles of Defi is that it means eliminating central institutions like banks.