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.
Lending money to borrowers isn’t an easy task. Unless you have a plethora of funds, you’ll have to look for other ways to get the capital you need. Cryptocurrency loan companies have become one solution for this problem. These lenders offer loans in digital currencies like Bitcoin (BTC), Ethereum (ETH), DAI and other altcoins that can be repaid with interest.
The borrower usually needs collateral to secure the loan, which is in most cases cryptocurrencies or other financial instruments. Lenders usually charge interest on these loans, and fees too. However if you manage your loan responsibly, it can end up being a good deal for you.
Via this site.