A large wallet at the center of the governance drama at Solana lending platform Solend started to move millions of dollars' worth of cryptocurrencies Tuesday morning, Solend said in a tweet.
The move potentially averts the risk of contagion in case of a liquidation that could have caused hundreds of millions of dollars in losses.
The anonymous wallet had deposited 95% of Solend’s pool of SOL tokens and represented 88% of USDC borrowing, but came close to a margin call last week as the SOL price dropped more than 40% to as low as $27.
The protocol would have automatically liquidated up to 20% of the large investor's collateral if SOL hit $22.30, and potentially led to damage in the broader Solana ecosystem. A governance vote was floated by protocol developers to take control of the account and take steps to manage the risk.
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The wallet's actions Tuesday came as the SOL price rose by 12% over 24 hours to $37. That means the liquidation levels are far below current prices, allowing the wallet's user to take necessary steps to prevent unforeseen damages in the case of a liquidation.