As Celsius Network tries to avert a complete collapse, it has repaid another $34.43 million of its debt to MakerDAO.
The repayment will put an end to a period of uncertainty that began when investors became apprehensive about the company’s liquidity position. It marks a significant moment in the history of the ecosystem and is an important step towards building a healthy, sustainable crypto economy that doesn’t leave anyone holding the bag.
In less than 24 hours, this is the second such repayment. According to reports, Celsius owns vault 25977, which shows a series of payments starting June 14.
Currently, it has a liquidation value of $2,722. After Celsius paid back a $50 million BTC loan earlier this week, the liquidation price stood at $8,838.57.
There are currently 21,962 wBTC and $41.2 million in DAI debt held by the crypto lender.
It was reported that Maker had repaid a $120 million crypto loan in a recent report published by CryptoPotato.
Liquidation sank to $4,966.99 during the largest payment of $64 million made on July 4.
Aave and Compound also received $67 million in debt payment from the firm on July 2.
As a result of the loan repayments, the threshold for forcible liquidation is being lower.
In addition to stopping withdrawals, Celsius laid off 150 employees a fortnight ago.
An offer of rescue was made by Nexo to the beleaguered company. A second bailout offer was made by FTX but was abandoned after a “$2 billion hole” was allegedly found in Celsius’ finances.
To help with financial restructuring, Celsius hired Citigroup and Akin Gump Strauss Hauer & Feld LLP.
Celsius Network was launched back in 2017 by former blue-chip company CelsiusNet along with other companies. The main aim of the company was to provide a stable cryptocurrency for online gaming sites and casino platforms that operate in the Chinese market.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
