Over the past two days, approximately $200 million in user funds have been withdrawn from MarginFi, a Solana lending protocol, due to the unexpected departure of its CEO and subsequent allegations of misconduct from rival platforms.
April 10 saw Edgar Pavlovsky, previous CEO of MarginFi, unexpectedly stepping down from his position. He attributed his departure to conflicts, some originating from within the company and others from external sources.
“Pavlovsky announced his departure from MarginFi today. He is no longer part of the team working on MarginFi, or the research division, effectively ending his involvement in the entire project.”
“I don’t agree with the way things have been done internally or externally.”
Previously, just a few hours ago, Pavlovsky found himself engaged in heated exchanges with some users on X, who were urgently pressing for the release of the much-awaited MRGN governance token via the protocol.
After today, it feels completely appropriate for me to resist any type of token. I’ll try to find ways to block this internally. This comment, originally posted on X by Pavlovsky on April 11, sparked strong reactions from the community.
Following the controversy and the ex-CEO’s provocative public comments, there has been a significant outflow of funds from MarginFi, with approximately $191 million being withdrawn over the past two days based on Dune Analytics’ latest figures.
Competing protocols accuse MarginFi of spreading lies
The dispute grew more intense when teams from other Solana lending platforms accused MarginFi of failing to meet the stated conditions.
According to SolBlaze, MarginFi was accused of not providing sufficient new BLZE tokens for its users as promised. This lack of replenishment resulted in BLZE token lenders not receiving their expected returns on their deposits within a given period.
MacBrennan Peet, a co-founder of MarginFi, countered the accusations, explaining that recent setbacks were caused by “blockchain overload” and priority given to ensuring user security.”
Peet dismissed SolBlaze’s allegations as unfounded and emphasized that his platform regularly exceeded the necessary payouts to both BLZE lenders and borrowers.
“Over the past 3 days, Marginfi hasn’t refilled BLZE as planned; it’s not a three-week lapse. This is due to network congestion and a focus on ensuring user security.”
In the meantime, Solend founder Rooter expressed concerns on X about alleged efforts from MarginFi to discredit Solend. This involved spreading false information regarding Solend’s Total Value Locked (TVL) and assaulting its oracles through defamatory attacks.
In spite of the discord within MarginFi becoming publicly known, the company has assured its users that Pavlovsky’s departure did not impact any of their offerings. The team remains dedicated to expanding the protocol further.
The team has still not informed its users when the MRGN token will be launched.
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2024-04-12 04:57