Celsius has repaid a considerable quantity of its excellent debt to Maker (MKR) protocol since the start of the month, signaling that the troubled crypto lending platform was attempting to stave off a whole collapse amid credible rumors of insolvency.
Since July 1, Celsius has repaid $142.8 million value of DAI stablecoins throughout 4 separate transactions, in line with knowledge from DeFi Explorer. The crypto lender nonetheless has $82 million in excellent debt owed to Maker. Out of $1.8 billion in lifetime investments, the agency’s losses at present stand at $667.2 million.
With the mortgage repayments, Celsius’ liquidation value on its Wrapped Bitcoin (wBTC) mortgage has dropped to $4,966.99 BTC. The liquidation value reportedly fell by practically half since Celsius posted a $64 million DAI fee on July 4, mere hours after it paid $50 million in DAI.
(*1*)JUST IN: Celsius Network has paid off one other $50 million in direction of its #Bitcoin mortgage. Their liquidation value has dropped to $8,840.
— Watcher.Guru (@WatcherGuru) July 4, 2022
Celsius is amongst a number of crypto blue-chip corporations on the point of insolvency after excessive market circumstances triggered historic losses throughout a number of positions. The agency paused withdrawals in mid-June because of excessive market circumstances and later introduced on new authorized counsel to advise on restructuring. Reports that United States mega-bank Goldman Sachs was seeking to purchase Celsius’ belongings quickly surfaced.
Related: Crypto platform tells savers the way it’s completely different from Celsius Network
Despite liquidity points and indicators of an imminent collapse in its enterprise, Celsius was reportedly nonetheless paying rewards as of final week. Although Celsius customers had been nonetheless receiving rewards, they had been unable to withdraw them because of liquidity constraints.