Sharky Fi to halt NFT withdrawals during solana downtime

NFT lending platform Sharky Fi has announced that it might disable foreclosures for loans “at a loss for borrowers” for a few hours.

While responding to a Shark Fi customer on Twitter, the company stated that the move is to give borrowers the time to repay.

NFT withdrawal halted

A lender named LtLollipop on Twitter complained that Sharky Fi was not allowing him to collect his NFTs, which he sees as inequality between lenders and borrowers on the platform.

“The team actively disabled the ability to claim the collateral for lenders but gave extra options to borrowers,” said LtLollipop in a previous tweet. “They chose not to treat each group equally as users,” they added.

While responding to the accusations in October 2022, Sharky Fi said that locking users from accessing their claims was necessary while Solana was underperforming “to give borrowers a bit more room.”

However, LtLollipop suggested that the company was using his funds to subsidize issues unrelated to him.

Claims the company refuted and stated that they are disabling the claims for a “good reason” since the Solana network went down for like half a day.

“FYI lenders @SharkyFi will disable your UI to stop you from claiming NFTs defaulted to you if, in their subjective opinion, it’s a good reason for THEM not you,” said LtLollipop.

Shark Fi said it has two options when Solana goes down – to do nothing and let hundreds of borrowers take a massive loss or disable foreclosures for a few hours and risk some lenders upset.

“In the last situation, it was a set of one – Loli. That seems like a fair tradeoff.” wrote the company.

Centralization vs. decentralization

The ongoing Twitter war has highlighted key differences between centralization and decentralization.

In decentralized platforms, users have full ownership and control over their assets. Whereas in centralized platforms such as Solana, customer assets are controlled by one or more validators.