Update on Solend as FTX Turmoil Rocks The Market - As one of the strategic ecosystems of FTX and Alameda, Solana is definitely facing many problems after the recent incidents. And Solend, the lending project on this platform is also recording many remarkable metrics.

    Solend liquidity crises

    Last night, a whale was liquidated on a loan on Solend’s platform. The project’s announcement tweet said:

    Earlier, a deviation in the oracle index also caused Solend to record bad debt levels in pools related to HUSD stablecoin.

    Liquidity fluctuations

    After many liquidity shocks over the past week, soBTC (a token that represents BTC on Solana) has also seen price fluctuations. As a result, Solend was forced to stop lending activities with this asset.

    SOL’s deposit interest rate on this platform has sometimes reached a whopping 2,500%/year. The above unbelievable number has partly reflected the risks as well as the poor liquidity of the ecosystem after FTX – Alameda crash. 

    At the time of this writing, it seems like the cash flow has fled from both the Solana ecosystem and the Solend lending platform.

    The total value of locked (TVL) fell to $42.8 million. It is worth noting that the USDC stablecoin loan market currently only records a deposit of $22 million.

    Also on November 9, Multicoin Capital (one of the investment funds supporting the Solana ecosystem) also said that it had problems in withdrawing money from FTX.

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