Celsius Repays $183M on DeFi Exchange Maker, Gets Back Collateral, Blockchain Data Shows

Jul 06,2022
KingData News: Crypto lending platform Celsius Network has once again repaid 34.4 million DAI to decentralized lending protocol Maker, according to on-chain data, CoinDesk reports. The transactions resulted in not only the extinguishment of the debt but the release from Maker of 2,000 wrapped bitcoin (worth $40 million) that had been posted as collateral, the data shows. Since July 1, according to the on-chain data, Celsius has paid down $183 million of its collateralized debt to Maker. Celsius still owes 41 million DAI (about $41 million worth) in loans to Maker, but it has about 22,000 wrapped bitcoin (about $440 million worth) posted against those loans. β€œBy repaying the debt, Celsius is possibly freeing up collateral (BTC) that then can be sold on centralized exchanges or via over-the-counter to meet creditor demands and customer withdrawals,” Fundstrat analyst Walter Teng told CoinDesk.β€œGiven that DeFi loans are overcollateralized, it makes sense for them to do this, as the value unlocked from paying back their loans (collateral less loans) is greater than the value of the loans themselves (should they opt to not repay).”
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.
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