MarginFi sees $155M exit amid management shakeup

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 largely caused significant releases from one of the most used DeFi protocols on Solana.

According to ChallengeLlama, MarginFi recorded net outflows worth $155 million following the announcement of Pavlovsky’s resignation. Its total value locked also fell to $524 million, from $738 million on Tuesday and $811 million on April 1.

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

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

MarginFi also confirmed Pavlovsky’s exit, noting that its products and operations are not affected. “His departure is a function of internal operational disagreements and his personal reasons, and we respect his privacy,” MarginFi said in its X. job.

Pavlovsky’s resignation came just hours after Solana SolBlaze liquid staking protocol job its accusations against MarginFi, claiming it acted in bad faith by failing to distribute allocated tokens to users in accordance with SolBlaze’s depositor reward guidelines. SolBlaze rewards BlazeStake Solana or Blaze token holders and depositors with tokens it calls “issues,” which depositors on MarginFi are also eligible to receive.

SolBlaze also accused MarginFi of airdropping tokens airdropped by SolBlaze that were intended to be used for governance participation.

However, SolBlaze said later (after Pavlovsky’s resignation) that he 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 this would reimburse users for what they missed.

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

Disclaimer: The Block is an independent media outlet providing news, research and data. Since November 2023, Foresight Ventures has been a majority investor in The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to provide objective, impactful and current information about the crypto industry. Here is our current financial information.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.