Bloomberg Law
June 20, 2022, 8:25 AM

Mounting Crypto Liquidations Make DeFi Go to Extremes (3)

Olga Kharif
Olga Kharif
Bloomberg News

The record-setting rout in cryptocurrencies has put a slew of decentralized-finance applications and their communities in a race to protect themselves against a cascade of liquidations -- sometimes by employing unprecedented measures.

On Sunday, token holders of Solend, a lending app on the Solana blockchain, voted to temporarily take over a large user’s account that faced the threat of a large liquidation, an extreme move for DeFi that appears to be a first. That decision was reversed in a second vote on Monday.

That all took place after MakerDAO, an app that supports stablecoin DAI and is run by ...