Celsius repays $143 million loan in Maker DAO protocol
- July 5, 2022
- 0
In July, crypto lending platform Celsius Network paid $142.8 million in DAI stablecoin to repay a loan on the Maker DAO DeFi protocol. Data: DeFi Explorer. As a
In July, crypto lending platform Celsius Network paid $142.8 million in DAI stablecoin to repay a loan on the Maker DAO DeFi protocol.
As a result, the WBTC collateral clearance price for Celsius was reduced to less than $5,000. At the time of writing, the asset is worth approximately $20,370.
On June 13, the platform suspended withdrawals, swaps and transfers between accounts “due to extreme market conditions”. Analysts suggested that the real reason for what happened was a “liquidity crisis”.
According to media reports, the company’s top investors refused to provide additional funding to the company.
Georgetown University law professor Adam Levitin said the Celsius leadership was betting on a “resurrection gamble”. According to him, the bankruptcy of the company is almost inevitable.
According to Zapper, the company is secure on multiple protocols: Maker DAO (~$77 million), Compound (~$100 million), Aave (~$178 million), and Notional Finance (~$3.2 million).
Celsius has 324,576 ETH locked in Ethereum 2.0 deposit contracts worth approximately $376 million.
Recall that the online investment platform BnkToTheFuture, which owns a stake in the company, offers three ways to save Celsius.
Media reported that around 150 employees were cut by the crypto lender amid the ongoing crisis.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
