👉 Background: Solend is a decentralised finance (DeFi) app. It lets users borrow and lend funds on the Solana blockchain without going through intermediaries.

👉  What happened: There was a user on the Solend platform that was sitting on a pretty big pile of tokens. They'd deposited around 5.7 million Solana tokens into Solend, which meant they had more than 95% of deposits on the platform. That left Solend very exposed if this user (aka the 'whale') pulled out.

👉 What else: Solend and its community passed a proposal granting it emergency powers to take over the account - a huge deal in the crypto world. But after some pretty significant backlash, Solend’s community voted to overturn the vote, cos it went against the core tenets of DeFi apps.

What's the key learning?

💡 One of decentralised finance’s core tenets is that it’s meant to distribute power and decision-making from one organisation or individual, to a whole network.

💡 This move by Solend breached the norms of DeFi by using centralised power to control and freeze a member’s funds. By overturning the vote, it looks like a pretty big win for decentralised believers. But there’s one big problem.

💡That one Solend customer could still be in for a massive dump... And this could put pressure on token prices and potentially cause a Celsius-esque bank run. This all highlights how chaotic the crypto world can be... They don't call it the wild west for nothin' 🤠.

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