MarginFi sees $155 million outflow amid leadership shakeup

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The Block2024/04/11 08:29

By:The Block

MarginFi creator Edgar Pavlovsky said he does not agree with the way the protocol has operated, both internally and externally. Earlier on Wednesday, the platform was accused of acting in bad faith by Solana-based liquid staking protocol, SolBlaze.

Edgar Pavlovsky, the creator of Solana-based crypto lending and borrowing platform MarginFi, announced his departure from the protocol on Wednesday due to internal disagreements. This has largely caused major outflows from one of the most used DeFi protocols on Solana.

According to DefiLlama , MarginFi saw net outflows worth $155 million from around Pavlovsky’s resignation announcement. Its total value locked also dropped to $524 million, compared to$738 million on Tuesday and $811 million on April 1.

“I don’t agree with the way things have been done internally or externally,” Pavlovsky wrote on X. “I’ve told everyone involved I don’t really care about tokens, or money, or any of that.”

Pavlovsky added that the departure is ultimately his failure as founder of MRGN Inc., the company behind the DeFi project.

MarginFi also confirmed Pavlovsky’s exit, noting that its products and operations are unaffected. “His departure is a function of internal operational disagreements and of his own personal reasons, and we respect his privacy,” MarginFi said in its X post .

Pavlovsky’s resignation came just hours after Solana liquid staking protocol SolBlaze posted its accusations against MarginFi, claiming that it acted in bad faith by not distributing tokens allocated to users per SolBlaze’s depositor reward guidelines. SolBlaze rewards BlazeStake Solana or Blaze token holders and depositors with tokens it calls “emissions,” which depositors on MarginFi are also eligible to receive.

SolBlaze also accused MarginFi of dumping airdropped tokens from SolBlaze which were meant to be used for governance participation.

However, SolBlaze later said (after Pavlovsky’s resignation) that it had communicated and resolved issues with the MarginFi team. SolBlaze added that MarginFi acknowledged its failure to distribute emissions allocations for eight days, and in response, MarginFi said it would refund users for what it missed.

MarginFi did not immediately respond to The Block’s request for comment.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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