Since the beginning of July, Celsius has started repaying its loans on major DeFi platforms. By the afternoon of July 7, this lending company completed paying back $41.23 million of DAI stablecoin to Maker. At its peak in June, Celsius’s loan on Maker amounted to 224 million DAI, collateralized by 23,962 WBTC, which is Bitcoin tokenized on Ethereum.
Along with debt repayment, Celsius also withdrew 21,962 WBTC collateralized for a loan to a private wallet. This amount is worth up to $449 million at press time. In addition to the 2,000 WBTC previously withdrawn, the company also took back all of its WBTC collateral.
However, Celsius is still maintaining a loan of 88 million DAI, collateralized by about $298 million of WBTC and UNI, on Compound; and a loan of $169 million USDC and DAI collateralized by over $650 million stETH, WBTC and many other tokens.
Celsius loan orders were a big concern at the end of June because of this company’s situation. If the loan orders are liquidated, a large number of tokens will continue to be dumped, threatening to bring down both Bitcoin and Ethereum through the WBTC and stETH vaults.
The reason behind Celsius’s underperformance is mainly from the fact that it converted the majority of user deposits to stETH – the token that locks ETH on Lido Finance, which has poor liquidity. The strong correction of crypto market in early June, and the sharp drop in the price of stETH, had led to massive withdrawals of users on the network. Celsius then had to block all trading/deposit/withdrawal activities from June 13 until now.
It is currently unclear about the reason behind Celsius’s repayment, as well as the company’s next move after withdrawing the above collateral.
Follow our channels for more crypto news:
- Cryptory Insights: https://t.me/CryptoryInsights
- Cryptory Global Community: https://t.me/CryptoryCommunity
- Facebook: https://www.facebook.com/CryptoryNetwork
- Twitter: https://twitter.com/CryptoryNetwork