there is a dap on solana a product a protocol called solend the largest lending market on solana
it is about to have a crippling liquidation of 170 million soul that would crash
the network although solana is about 86 percent down from its all-time high solana today
today is at risk of going to zero i repeat solana is at risk of going to zero
welcome back everybody to altcoin daily you subscribe for daily videos on everything going on
in cryptocurrency let's talk about solana if you are unfamiliar solana is an open source
dapp platform a competitor to ethereum the ninth most valuable cryptocurrency by market cap
in existence a powerful tool for developers fast for everyone solana is a decentralized blockchain
built to enable scalable user-friendly apps and dapps for the world over 2000 transactions per
second over 79 billion total transactions average cost of a transaction is cheap and they have over
1 000 validator nodes now if you follow the crypto market every day like we do if you're
familiar with solana you know that when solana describes itself as a decentralized blockchain
we could argue a little bit with that i mean the fact is helana gets turned off shut down
every once in a while so that the internal team can fix the problems of solana it is what it is
today solana is having a major problem although solana is about 86 percent down from its all-time
high solana today today is at risk of going to zero i repeat solana is at risk of going to zero
or was at risk it might be fixed i'm going to update you everything you need to know in this
video smash the like button if you appreciate that and you want to support our channel
and let me clue you in to what is going on with solana and cryptocurrency first of all there is a
dap on solana a product a protocol called solend the largest lending market on solana
it is about to have a crippling liquidation of 170 million sold that would crash
the network so people have been watching this there is a large liquidation watch on solana's
soul and protocol where a whale has deposited 5.7 million sold about 170 million and then borrowed
108 million stable coins this alone accounts for a huge percentage of borrowing on solana
and now this position is under a liquidation threat so a whale who could get liquidated
is putting the whole protocol at risk of going to zero the solana folks tried to get in touch with
the whale to get the whale to restructure their loan there are people who believe they know who
the whale is it's not clear how the discussion went but the whale did not change the terms
of the loan the whale did not comply this is a problem the whale is not closing their position
see in most protocols like compound ave maker etc these are the lending protocols the blue chips on
ethereum this will result in on-chain liquidations that's what's supposed to happen in fact we have
seen many such large liquidations on ave and maker recently and everything worked out as expected
however for solana such a large liquidation in an illiquid market and unstable network like solana
is likely to have vastly damaging consequences and this is not hyperbole solana network has already
gone down and halted a dozen times this year so what will happen to seoul and the price of soul
if this position gets liquidated like what's about to happen from the sole team themselves this would
cause chaos putting a strain on the solana network liquidators would be especially active in spamming
the liquidation function which has been known to be a factor causing solana to go down in the past
letting a liquidation of this size happen on chain is extremely risky dex liquidity isn't deep enough
to handle a sale of this size and would cause a cascading liquidation effect additionally
liquidators will be incentivized to spam the network in an effort to win a very lucrative
liquidation so there are certain people who want this to happen so they can make money
this has been known to cause loads of issues for solana in the past which would be exacerbated by
the problems at hand so peep this my friends so what is soul and what is solana going to
do to stop this from happening to stop solana from essentially going to zero in a series of cascading
liquidations well to prevent this the soulland and solana team are proposing to literally steal the
wales funds and execute otc trades so somebody had the bright idea that instead of just doing
what the contract says they will take over the position of the whale and liquidate these coins
manually through an otc desk this is unprecedented but it gets better a dao was created specifically
to be able to hold a sham vote where the system was closed for voting for a long time and then
a single large wallet voted yes to this proposal so understand the specifics the dao was spun up
less than 24 hours ago 98 of the yes votes came from one unidentified whale wallet they gave their
users less than six hours to vote on this and the voting site was down for three hours of the vote
because wait a minute just so i understand this correctly one whale has leveraged a huge amount
of solana so much that if the price drops and this wallet gets forced liquidated it could effectively
crash solana is that about right and this whale doesn't look like they're going to cash out so
they want to essentially forcibly seize his solana and make him cash out that sounds sub-optimal
sounds very centralized authoritarian style of governance of sorts maybe the antithesis
of crypto so as a solana holder it's hard not to have mixed feelings about this because on the one
hand they recognized that what was happening could send the price of solana down to zero
on the other hand they just became authoritative and basically reinvented the traditional financial
system that we have today congratulations gentle people of soulland you've reinvented tradfy
but with more steps and more frequent and unpredictable interruptions so at this point
in time because the gentle people of soulland and solana stepped in to basically seize the whale's
wallets and move the coins manually themselves at this point in time it doesn't seem like solana is
heading to zero but information on this is coming in by the hour make sure you subscribe we're going
to continue to keep you updated on this story this again highlights a problem in the cryptocurrency
space how certain protocols sell themselves as decentralized but when the rubber meets the road
they step in and are revealed to be decentralized in name only now if you're in the crypto market if
you follow the channel i don't think any of us ever thought that solana was very decentralized
that wasn't part of my investors thesis when i bought it and the fact is you know many protocols
can see a lot of success with you know varying degrees of centralization and decentralization
i mean the goal is to get decentralized because if the protocol isn't permissionless what's the
point but maybe selling themselves describing themselves as decentralized right on their website
isn't the best and most honest and straightforward definition of what it is so my opinion
i think the solana team essentially did the right thing in the moment not having the project go to
zero is optimal now they revealed how centralized they are and how authoritative but again did we
think they were that decentralized in the first place we didn't it's okay for right now barely
but this or things like this cannot keep happening if salon is to have a long-term future we are in a
bear market so the price can always stay low or go a little bit lower depending on what bitcoin and
ethereum do but i think solana as a protocol is going to sustain and possibly can still
thrive in the future i mean they're integrated with coinbase they're integrated with openc
for alternative layer ones they're honestly one of the best in the space especially with
partnerships and integrations and developing ecosystems hey solana is up today as well
so crazy times you'll have to give me your opinion in the comments below i look forward
let me know the answer to this number one do you hold solana do you think you'd take out a
position in solana if it got low enough are you still bullish eventually on the future of solana
and do you think that the devs did the right move by stepping in let me know your thoughts in the
comments below we keep you updated on a daily basis everything going on in cryptocurrency we
keep you informed that's why you subscribe solano was the biggest news of the day my friends so
let's continue this conversation in the comments appreciate you guys being here see you tomorrow