Celsius Network Aggressively Repays Debts – Liquidation Price Falls Under $5,000

Fears of insolvency have been high around Celsius Network, as “extreme market conditions” forced the project to pause withdrawals.

Fears of insolvency have been high around the Celsius Network, as “extreme market conditions” forced the project to pause withdrawals three weeks ago. However, with July rolling around, Celsius Network has begun aggressively repaying its debts.

Celsius Network Repays $120 Million MakerDAO Debt

On-chain data shows that since July 1st, the Celsius Network has remunerated $142.8 million of its debt to decentralized lending platform Maker Protocol across four transactions, with $114 million of the repayments being made on July 4th.

At the time, the liquidation price for the loan stood at $10,500. According to DeFi Explore, the aggressive debt repayments made by the Celsius Network has helped reduce to the liquidation price on its WBTC collateral to $4,967.09.

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Essentially, by paying down its Maker debt, Celsius has de-risked its loan position from potential liquidation.

Celsius Network Repays Aave and Compound Debts

Not only has Celsius kicked off the month by repaying its MakerDAO debts, but crypto researcher Plan C reported that the crypto lender also paid off its debts to Aave and Compound on July 2nd, which had amounted to a cumulative $67 million.

On the Flipside

  • Vauld has suspended all withdrawals, trades, and deposits on its platform as it faces down a liquidation crisis.

Why You Should Care

The aggressive repayment of debts has caused a flurry of excitement among the platform’s users, with many believing the Celsius Network’s insolvency scare to be over.

Find out more about the suspension of withdrawals in:

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Celsius Crypto Exchange Pauses All User Activity, Sends $320M to FTX

For more on the ripple effect of the pause, read:

Crypto Fear Contagion Grows After Celsius Network “Pause”

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia