{"id":10063,"date":"2024-04-12T04:18:56","date_gmt":"2024-04-12T04:18:56","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/solana-lender-drama-deepens-250-million-outflow-after-founder-quits\/"},"modified":"2024-04-12T04:18:56","modified_gmt":"2024-04-12T04:18:56","slug":"solana-lender-drama-deepens-250-million-outflow-after-founder-quits","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/solana-lender-drama-deepens-250-million-outflow-after-founder-quits\/","title":{"rendered":"Solana Lender Drama Deepens: $250 Million Outflow After Founder Quits"},"content":{"rendered":"

Solana continues to be on the news, this time due to some projects based on the chain having a dispute. Solana-based lending and borrowing protocol MarginFi has recently been \u201cbeefing\u201d with Solend, another lending protocol, and SolBlaze, a liquid staking platform.<\/p>\n

Amid the drama, MarginFi\u2019s CEO and founder stepped down after some \u201cinappropriate\u201d X posts and massive criticism. The project now faces significant outflows and a lack of trust from the Solana community.<\/p>\n

<\/span>Solana\u2019s Projects Fight Each Other<\/span><\/h2>\n

Yesterday, SolBlaze claimed that MarginFi had failed to replenish the BLZE tokens into their rewards system for users to claim for the past three weeks. Moreover, the staking platform implied that the MarginFi team refused to respond to their attempts to reach out and clarify the situation.<\/p>\n

MacBrennan, the co-founder of the MRGN group, considered the project \u201cthe target of a very unfortunate hit piece.\u201d In an X post, the MarginFi contributor \u201cclarified the misinformation.\u201d<\/p>\n

\n

We were the target of a very unfortunate hit piece today.<\/p>\n

I'll clarify the misinformation you're seeing:<\/p>\n

1) This tweet is completely wrong<\/p>\n

marginfi has failed to replenish BLZE over the last 3 days, not three weeks. Yes, this is because of chain congestion and prioritizing\u2026 pic.twitter.com\/c8OhZqBYza<\/a><\/p>\n

— macbrennan (hiring) (@mrgnalt) April 10, 2024<\/a><\/p>\n<\/blockquote>\n

Per the post, the replenishing issues had occurred over the last eight days instead of three weeks. The problems were caused by the Solana network congestion and \u201cprioritizing user safety.\u201d<\/p>\n

Additionally, MacBrennan refuted the claims that MarginFi\u2019s team declined to respond. According to the post, the SolBlaze team reached out to them at 4:46 am on the same day SolBlaze posted the \u201cexpos\u00e9.\u201d<\/p>\n

MarginFi users were quick to respond to MacBrennan\u2019s post, criticizing the project for not being truthful. The protocol users legitimized<\/a> SolBlaze\u2019s claims by stating they had not received BLZE tokens long before the network congestion started.<\/p>\n

Adding fuel to the fire, the Solend protocol team posted<\/a> on their official X account that the project will airdrop to the users who withdraw from MarginFi and deposit into their protocol.<\/p>\n

Rooter, Solend\u2019s founder, explained why they joined in, affirming<\/a> that his project was \u201con the receiving end of multiple attacks\u201d during the bear market.<\/p>\n

The alleged attacks from the MarginFi team included \u201cattempting to blackball Solend with peers,\u201d bad-mouthing and criticizing the project, and \u201cattacking Solend\u2019s oracle configuration.\u201d<\/p>\n

Rooter claimed that healthy competition is well-received, but that isn\u2019t what occurs with MarginFi. Solend\u2019s founder concluded: \u201cMarginFi rubs many teams the wrong way with their misconduct.\u201d<\/p>\n

\"SOL,<\/p>\n

<\/span>MarginFi CEO Quits, Claims Differences With The Team<\/span><\/h2>\n

Amid the drama, MarginFi\u2019s founder and CEO, Edgar Pavlovsky, made a series<\/a> of responses to the criticism that were not well received. Pavlovsky stated in one of his responses, \u201cTake your money out, go fuck yourself,\u201d later calling the user an \u201cirrelevant, slandering piece of shit.\u201d<\/p>\n

The reply spree continued throughout Wednesday afternoon, resulting in the later resignation from his position in all MRGN arms. The former CEO claimed he doesn\u2019t \u201cagree with how things have been done internally or externally.\u201d<\/p>\n

\n

I resigned from mrgn today. From working on marginfi, from the research arm, from it all.<\/p>\n

It's a world class team — it really is — but I don't agree with the way things have been done internally or externally. I've said it many times and I'll say it again, but those of us who\u2026<\/p>\n

— edgar \"◼\" (@edgarpavlovsky) April 10, 2024<\/a><\/p>\n<\/blockquote>\n

The lending protocol confirmed Pavlovsky\u2019s resignation, stating that \u201chis departure is a function of internal operational disagreements and his reasons.\u201d Additionally, they reassured users that all projects remained fully operational and unaffected by the founder\u2019s departure.<\/p>\n

The announcement also received criticism, with MarginFi users expressing concern about the lack of a timeline regarding the token airdrop. It appears the incident has made many reconsider<\/a> continuing to use the protocol.<\/p>\n

As a result, the total value locked (TVL) dropped from $910 million to $660 million. According to Dune data, the massive outflows account for $250 million in the past 48 hours.<\/p>\n

\"Solana,<\/p>\n

Notably, the Solend Protocol has seen a significant rise in new users amid the drama. The rivaling platform quadrupled<\/a> its new users in the past 24 hours, going from 245 on Wednesday to 1178 new users today.<\/p>\n