- Solend’s notable increase in deposits and token value suggests that the protocol is benefitting from its rival MarginFi’s recent internal issues.
- Solend’s founder’s public criticism of MarginFi coincided with a significant uptick in Solend’s performance, indicating that investors may be shifting their funds from MarginFi to Solend due to MarginFi’s internal disagreements.
Solana-based lending protocol Solend experienced a sharp rise in both its token value and deposits, following comments from its founder that criticized rival DeFi protocol MarginFi. The increase in activity appears to be in response to MarginFi’s recent turmoil, which included the departure of its founder amid internal disagreements.
Solend’s token saw a jump of up to 44% on Thursday before settling slightly lower at $1.57 in the afternoon. This jump in value was accompanied by a surge in deposits, which reached $18.6 million—the highest daily inflow since 2022.
The founder of Solend, who goes by the pseudonym 0xRooter, took to social media to share how the increased activity on Solend correlated with his criticism of MarginFi. He accused the rival protocol of attempting to discredit Solend and spreading false information about the platform.
“Last July, MarginFi attempted to blackball Solend with peers, which we found out through backchannels. They spread falsehoods,” 0xRooter stated on Wednesday. He also claimed that MarginFi regularly criticized Solend to boost its own engagement.
MarginFi has faced challenges, with net outflows totaling $194 million following the resignation of its founder Edgar Pavlovsky. The protocol’s total value locked dropped to $479.8 million from $687.4 million earlier in the week.
Pavlovsky resigned from MarginFi after Solana liquid staking protocol SolBlaze accused the DeFi protocol of bad faith conduct, specifically for not distributing tokens according to SolBlaze’s depositor reward guidelines.
The unfolding drama between Solend and MarginFi highlights the competitive and sometimes contentious nature of the decentralized finance (DeFi) space on the Solana blockchain.
Solend Gains from MarginFi’s Challenges
Solend’s significant increase in deposits and token value, following its founder’s public criticism of MarginFi, suggests that the protocol is benefiting from its rival’s recent internal turmoil. While the competition in the Solana-based DeFi sector intensifies, Solend appears poised to capitalize on MarginFi’s challenges and strengthen its position in the market.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
