1 year ago
1 min read
Solend is at risk of incurring bad debt as a result of a large lending position that is now underwater
A significant lending position on the Solana-based lending platform Solend is now underwater, but infrastructure issues are preventing it from being liquidated properly. As a result, the protocol risks incurring bad debt. The loan is part of Solend’s primary lending pool. A 50% drop in the price of Solana (SOL) in the last three days has reduced the value of the collateral used for the loan. Under normal circumstances, other market participants would have liquidated the loan. However, the platform has encountered Oracle issues related to network congestion, frustrating these efforts. This loan is held by a large user who