Edgar Pavlovsky, the chief executive officer of the Solana-based decentralized finance (DeFi) platform Marginfi, has resigned amid internal conflicts, triggering a 25% reduction in the platform’s total value locked.
Pavlovsky announced his resignation on X, where he cited disagreements with the company’s practices, a statement confirmed by Marginfi.
The CEO’s exit has prompted a substantial outflow of funds.
In the wake of Pavlovsky’s departure, Marginfi’s TVL has dropped to under US$600 million, reflecting a crisis of confidence among its users.
The platform’s difficulties were compounded by a public disagreement with SolBlaze, a Solana staking pool, over the handling of governance tokens, which further damaged relationships within the DeFi community.
Competitor Solend has seized the opportunity by offering airdrops to Marginfi users who move their funds.
Concurrently, the Solana network itself has faced congestion problems as of late, with bot spams causing 75% of the network’s transactions to fail.