Celsius Repays $120 Million Stablecoin Debt to Maker Protocol

Jul 05,2022
KingData News: Celsius Network paid off another $120 million towards its Bitcoin loan on Maker. After another $120 million repayment, its new liquidation price sits at $4,967. Celsius had previously borrowed hundreds of millions on Maker using wrapped bitcoin (WBTC) as collateral. By paying down its Maker debt, Celsius has de-risked its loan position from potential liquidation. In decentralized finance, liquidations occur when traders cannot repay their loans on time, and the protocols automatically sell their collateralized assets. On-chain data suggests that Celsius’ obligations are complex and it maintains collateralized loans on multiple lending protocols. The firm still owes $82 million to Maker, $100 million to Compound, and $175 million to Aave.
On June 13, digital asset lending platform Celsius Network announced that it would suspend all withdrawals, swaps and transfers between accounts due to extreme market conditions. On the same day, Etherscan data showed that Celsius transferred a total of approximately 111,815 ETH to FTX over the last three days. This indicator provides a real-time tracking of Celsius' funding crisis.