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 has largely led to a large outflow from one of the most widely used DeFi protocols on Solana.
According to DefiLlamaMarginFi saw a net outflow of $155 million following Pavlovsky’s announcement. Its total value also fell to $524 million, compared to $738 million on Tuesday and $811 million on April 1.
“I don’t agree with the way things have been done internally or externally,” Pavlovsky wrote on X. “I told everyone involved that I don’t really care about tokens, or money, or anything like that.”
Pavlovsky added that the departure is ultimately his failure as the founder of MRGN Inc., the company behind the DeFi project.
MarginFi also confirmed Pavlovsky’s departure, noting that its products and operations remain unaffected. “His departure is a function of internal operational disagreements and his own personal reasons, and we respect his privacy,” MarginFi said in its X after.
Pavlovsky’s dismissal came just hours after the Solana liquid staking protocol SolBlaze Posted his accusations against MarginFi, claiming that it acted in bad faith by not distributing tokens allocated to users according to SolBlaze’s depositor rewards guidelines. SolBlaze rewards BlazeStake Solana or Blaze token holders and savers with tokens it calls “issues,” which savers on MarginFi are also eligible for.
SolBlaze also accused MarginFi of dumping SolBlaze air-dropped tokens intended to be used for board participation.
However, SolBlaze said later (after Pavlovsky’s resignation) that it had communicated and resolved issues with the MarginFi team. SolBlaze added that MarginFi acknowledged that it had failed to distribute the issuance allocations over eight days, and in response MarginFi said it would reimburse users for what it missed.
MarginFi did not immediately respond to The Block’s request for comment.
