Solana experienced high network congestion again this weekend as the crypto market crashed. The bottleneck in the altcoin project prevented DeFi users from completing their loan guarantees and caused a flurry of liquidation. For details cryptocoin.com keep reading.
Altcoin DeFi users liquidated due to congestion
Solana DeFi users were among the hardest hit in the crypto bloodbath this weekend. The Solana network again suffered congestion issues from Friday to Saturday as crypto assets such as Bitcoin, Ethereum, and Solana fell. While Solana has faced similar issues in recent months, most notably in September when the network suffered an 18-hour outage, this issue has had a severe impact on users borrowing assets from DeFi platforms like Solend.
SOL has collapsed amid a market-wide downturn over the past few days, dropping from $143 on Thursday to $90 on Saturday. As a result, multiple DeFi users who took out loans realized they needed to top up their collateral to avoid being liquidated. This means users often have to struggle to top up their margins during market crashes. This weekend, many Solana users had a hard time completing their coverage as the network was so congested.
Liquidators and debtors competed to submit their transactions as the SOL collapsed, but liquidators had more success. Solana Labs co-founder Anatoly Yakovenko said in a tweet on Saturday that “bots are sending double TX” and announced that the ongoing network congestion issue will be fixed in the 1.9 mainnet version of Solana. Solana’s largest lending protocol, Solend, acknowledged the liquidation issue early Sunday. The team behind the project released a tweet confirming that it is ‘painfully aware’ of the problem and is looking for a way to reimburse those affected.
We’re painfully aware of the issues in which users were unable to save themselves from being liquidated due to network congestion, and are looking into reconciliation.
— Solend 🟠 (@solendprotocol) January 23, 2022
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