Has Celsius only repaid $ 120 million to Maker?
Important takeaways
- Celsius appears to have repaid $ 120 million to Dai Vault # 25977 with several collateral in a series of three transactions.
- The crypto lending firm suspended withdrawals last month; these repayments can help it regain solvency.
- Celsius has not confirmed that they own vault # 25977, but it is widely believed that this is the case.
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Celsius appears to have repaid $ 120 million of its debt to Maker, the DeFi protocol behind Dai stablecoin, although Celsius has not been fully confirmed to be the payer.
Maker Vault sees debt repayment
Celsius may have paid off some of its outstanding debt this weekend.
Celsius first closed withdrawals, transactions and swaps on 13 June. It now appears that the company is repaying its debt in an attempt to recover liquidity.
Data suggest that Dai Vault # 25977 with several collateral saw three significant repayments between July 3 and July 4, 2022.
These transactions involved 64 million DAI, 50 million DAI and 6.2 million DAI. Since DAI is linked to the value of the dollar, these transactions are worth approximately $ 120 million in total.
The vault was also repaid $ 22.6 million on July 1, and $ 53.7 million repaid between June 14 and June 16.
Can Celsius regain solidity?
Large debt repayments such as these can help Celsius regain solvency and enable it to reactivate withdrawals.
These Maker debts are probably only part of Celsius’ obligations, as the company invests in various crypto and DeFi contracts to generate revenue for users.
Nevertheless, these repayments have lowered vault # 25977’s liquidation price and reduced the likelihood of compulsory liquidation.
Vault # 25977 uses Wrapped Bitcoin (WBTC) as collateral, and as such it will be liquidated if BTC falls to a certain price. On June 13, the vault’s liquidation price was $ 16,852 – dangerously close to Bitcoin’s typical June price of $ 20,000.
Now, after last month’s payments, the vault’s liquidation price is $ 4,966, leaving much more room for prices to vary.
Do You Own Celsius Vault # 25977?
Celsius itself has not confirmed that they own the vault in question, nor has it confirmed that they have repaid this debt.
However, MCD vault # 25977 is believed to belong to Celsius as it is owned by the Ethereum address beginning with 0x87a6. That address is one of many Ethereum addresses that Larry Cermak has Blocks identified as belonging to Celsius in June.
An update from Celsius published on Friday says little about the company’s DeFi investments. Instead, it suggests that the firm is exploring strategic transactions and restructuring responsibilities to recover solvency and reopen withdrawals.
Other reports from Sunday indicate that the company has laid off a quarter of its employees in the wake of the liquidity crisis.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH and other cryptocurrencies.
