What Happened to Marginfi as Founder Leaves and TVL Drops 20%?

What Happened to Marginfi as Founder Leaves and TVL Drops 20%?

What Happened to Marginfi as Founder Leaves and TVL Drops 20%?

This morning, Edgar Pavlovsky, the founder of Solana ecological margin agreement Marginfi, announced on social media that he has resigned from the Marginfi team. The reason for his resignation is that he cannot agree with the way things are done internally or externally within the team.

He mentioned that lawyers are currently resolving the issue of the founder’s departure. He stated in the post that even though his recent financial situation has been poor and his personal income has almost reached zero, he has told all relevant parties that he does not care about tokens, money, or anything else. Currently, he states that he does not have a next step plan.

For a project that is in an upward trend, the founder’s departure from the team is undoubtedly a heavy blow. Although Edgar did not specify the specific events that led to the team’s breakdown, the community generally associates his resignation with the previous allegations by SolBlaze against Marginfi.

SolBlaze is an LST project on Solana, and last night it accused Marginfi of manipulating BLZE emission distribution, resulting in losses for users. “In the past three emission cycles (three weeks), Marginfi failed to load the allocated BLZE emissions into its reward system for users to claim, and the BLZE distributed from the emission allocation only exists in their team’s multi-signature.” Therefore, SolBlaze announced the immediate suspension of the emission distribution of bSOL and BLZE stored on Marginfi.

SolBlaze also added that it contacted Marginfi co-founder Mac Brennan regarding the issue of insufficient emission supplement but did not receive any response. Marginfi has also not conveyed any information about delayed emissions to SolBlaze in the past few weeks.

Perhaps Edgar’s resignation is related to how the Marginfi team handled this issue with SolBlaze. At the time of writing, SolBlaze stated that it has reached a settlement with Marginfi, but before the community could fully recover, a new protagonist joined this dispute.

Marginfi suffered a vampire attack, revealing the drama of its downfall
One hour after Edgar’s post, Solend officially announced that it will airdrop to users who withdraw from Marginfi and deposit into Solend. The specific amount of the airdrop will be proportional to the USD value transferred by the user, and the funds must be held for a certain period of time to qualify.

The founder’s resignation and the vampire attack on Marginfi have left most of the community puzzled, while Chris Burniske, the founder of Place Holder who seems to be aware of the insider information, exclaimed, “Wow, things just got exciting.”

Solend founder Rooer took the opportunity to release a lengthy article, recounting the past disputes between Solend and Marginfi. In his narrative, the Marginfi team used all means to compete, including spreading rumors about Solend, claiming that all Solend TVL comes from Alameda, and that Solend v2 has no TVL. Screenshots released by Rooter showed that they had contacted the OKX wallet team and found that the Marginfi team had discouraged the OKX team from developing business relationships with Solend because Solend was related to “FTX old money.”

In addition, Rooter also accused the Marginfi team of frequently participating in those “black posts” about Solend. “Marginfi often speaks ill of Solend in posts criticizing them and interacts with them.” Rooter also provided evidence that Marginfi co-founder Mac Brennan had made tweets mocking and attacking Solend and persistently pursued Rooter’s tweets. “We initially refused to participate, not wanting to give them attention. But the voice was incessant, and we didn’t retaliate, so they kept attacking.”

Meanwhile, Marginfi co-founder Mac Brennan, who was exposed by Rooter, just finished analyzing and responding to Blaze’s accusations, and now he is facing a “character attack.”

Before Rooter’s tweet, Brennan had already published a lengthy article explaining his behavior on social media, stating that “everything is just to increase clicks and traffic.” After proving his character and marketing abilities, Brennan concluded his response with “everything we do is for the users, and we will continue to do so.” However, judging from the comments, the community is not buying Brennan’s attention-seeking marketing strategy, with one comment sarcastically saying, “TLDR: Dude has multiple personality disorder.”

Apart from the exchange between Rooter and Mac Brennan, the entire community, as “onlookers,” expressed their own views. Some sympathized with Edgar, while others questioned whether the team was putting on a show. However, the most common advice was for users to withdraw funds from Marginfi. After the dramatic events unfolded, Marginfi’s current TVL is $650 million, with a 24-hour decline of 18.85%, and it has been surpassed by Raydium.

Since the FTX incident, the achievements of the entire Solana ecosystem’s quiet construction in the market are evident. Solana is undoubtedly the ecosystem with the fastest development speed and the strongest attracting effect since 2024. However, it is also because of the numerous projects that competition for market attention resources has become more intense, as seen in the dramatic events between Marginfi, SolBlaze, and Solend. Whether the entire ecosystem can restore calm after the negative publicity caused by congestion on the Solana network remains to be seen.

This article is authorized for reprint by BlockBeats.