Solana lending protocol MarginFi CEO resigns abruptly, TVL outflow nearly $200 million

The founder of the Solana lending protocol MarginFi abruptly announced his resignation, leading to a TVL outflow of nearly $200 million. The crypto community seems more concerned about whether MarginFi will issue tokens, while another lending protocol, Solend, took the opportunity to launch a TVL vampire attack.

Full Resignation Letter from MarginFi CEO

Today, I have resigned from all positions at MarginFi, including the MarginFi project and research department.

The MarginFi team is indeed top-notch, there is no doubt about that. However, I do not agree with the way things are done internally and externally within the company. I have expressed my opinions multiple times and reiterate once again:

We are fortunate to be able to choose the work we want to do every day. I have always adhered to one principle, which is to dedicate all my energy to work that I believe is meaningful to society. This is what truly drives me forward.

The lawyers are still handling the relevant matters, but I have clearly informed everyone that I am not concerned about tokens, money, or other benefits. This clearly demonstrates my intentions and principles.

My financial situation has not been ideal recently, and resigning has almost brought me back to square one. But if you have been in this industry for a while, you will know that this is not a big deal.

Currently, I do not have any plans for the next steps, but as the founder of MarginFi, this situation is always my responsibility. Just like I have done for many years, I will reflect and continue to improve.

Long live the people, long live democracy, and long live the quality of life for everyone!

I resigned from mrgn today. From working on marginfi, from the research arm, from it all.

It's a world class team — it really is — but I don't agree with the way things have been done internally or externally. I've said it many times and I'll say it again, but those of us who…

— edgar ◼️ (@edgarpavlovsky) April 10, 2024

MarginFi TVL Outflow Nears $200 Million

According to DefiLlama, MarginFi Lending's TVL has dropped from $687 million on the 10th to $519 million.

Prior to this, liquidity staking service SolBlaze had a dispute with MarginFi, accusing the latter of operating maliciously and refusing to communicate, selling millions of BLZE tokens daily under the guise of "fund management."

MarginFi's TVL has decreased by $292 million from April 1 to date.

MarginFi: All Products Operating Normally

MarginFi officially confirms the resignation of CEO Edgar Pavlovsky and assures the community that core developers, the team, and investors are actively ensuring a smooth transition.

The team acknowledges that Edgar Pavlovsky's departure was due to internal operational disagreements and personal factors, but also expresses gratitude for his contributions:

All products will continue to operate normally without any impact. The advantage of DeFi is that the protocol will continue to operate even when core contributors leave. We sincerely thank Edgar for all his help along the way and wish him the best. Finally, we want to thank the community for their continued support.

It is with mixed emotions that we confirm @edgarpavlovsky’s resignation from @mrgngroup, contributing to marginfi.

We want to assure the community that the core contributors, the company, and our investors are actively engaged to ensure a smooth transition.

As of this…

— marginfi ◼️ (@marginfi) April 10, 2024

Crypto Community: Are Tokens Being Issued or Not?

Most of the community is indifferent to the internal issues of MarginFi, @Blackbull_xyz stated:

I assure you no one cares about MarginFi. Founder resigns, you issue tokens, and everyone will forget today's controversy.

Another lending protocol, Solend, took advantage of the situation to launch a TVL vampire attack, claiming that users who transfer funds from MarginFi to Solend will receive an airdrop.

Solend's TVL increased by approximately 8%, or $11 million, in a single day.

Solend will airdrop to users who withdraw from marginfi and deposit into Solend.

— Solend (@solendprotocol) April 10, 2024