BTC

$63927.945

0.87%

ETH

$3131.956

0.63%

BNB

$601.142

-0.74%

XRP

$0.521

0.43%

News

Celsius Pays $95 Million In Loans On Aave And Compound

July 12, 2022 - Around 2 mins mins to read
Celsius Network, a cryptocurrency lender struggling with liquidity issues, has paid back $95 million of its loan to two lending platforms Aave and Compound.
Celsius Pays $95 Million In Loans On Aave And Compound
Celsius CEO Alex Mashinsky

After paying off all loans on Maker, withdrawing nearly $449 million in WBTC collateral just a few days ago, Celsius used a similar fund management tactic aimed at freeing up collateral on other lending platforms which the protocol is borrowing.

Based on data from blockchain analytics firm Nansen, it has been shown that a Celsius-linked wallet transferred 35 million DAI and 40 million USDC of Circle in various transactions. The wallet also paid an additional 20 million USDC at the end of July 10 to Aave.

The platform also swapped some interest-bearing tokens on Aave with 1,647 WBTC (worth $33.4 million) and about $1.6 million combined BAT and xSUSHI. The latest payments have allowed it to buy back most of the collateral from the loan.

Since the beginning of this week, the company has recovered 8,436 WBTC worth $172 million at market value. The company also redeemed around $700,000 in COMP, the native token of the Compound protocol.

Overall, the company still owes Aave and Compound $140 million, down from $235 million last week. The collateral that Celsius locks with loans stands at $680 million, through various tokens such as stETH, LINK, SNX, WBTC, and UNI, having dropped from the $950 million collateral mark and will be released theoretically fully discharged if Celsius paid off the remainder of the loan.

Celsius Pays $95 Million In Loans On Aave And Compound
Celsius loans on Aave. Source: Zapper
Celsius Pays $95 Million In Loans On Aave And Compound
The loans on Compound. Source: Zapper

Basically, the recent liquidity crisis in the crypto market has hit crypto lenders heavily, such as Voyager Digital and BlockFi.

As for Celsius, the company has halted all customer withdrawals starting June 12 to find a solution to stabilize liquidity, while cutting jobs and hiring restructuring specialists. The company is currently working on paying off the rest of its loan for DeFi protocols.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

3AC

AAVE

BlockFi

Celsius

Circle

Compound

DAI

USDC

Voyager

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Celsius Pays $95 Million In Loans On Aave And Compound

Celsius Network, a cryptocurrency lender struggling with liquidity issues, has paid back $95 million of its loan to two lending platforms Aave and Compound.
Celsius Pays $95 Million In Loans On Aave And Compound
Celsius CEO Alex Mashinsky

After paying off all loans on Maker, withdrawing nearly $449 million in WBTC collateral just a few days ago, Celsius used a similar fund management tactic aimed at freeing up collateral on other lending platforms which the protocol is borrowing.

Based on data from blockchain analytics firm Nansen, it has been shown that a Celsius-linked wallet transferred 35 million DAI and 40 million USDC of Circle in various transactions. The wallet also paid an additional 20 million USDC at the end of July 10 to Aave.

The platform also swapped some interest-bearing tokens on Aave with 1,647 WBTC (worth $33.4 million) and about $1.6 million combined BAT and xSUSHI. The latest payments have allowed it to buy back most of the collateral from the loan.

Since the beginning of this week, the company has recovered 8,436 WBTC worth $172 million at market value. The company also redeemed around $700,000 in COMP, the native token of the Compound protocol.

Overall, the company still owes Aave and Compound $140 million, down from $235 million last week. The collateral that Celsius locks with loans stands at $680 million, through various tokens such as stETH, LINK, SNX, WBTC, and UNI, having dropped from the $950 million collateral mark and will be released theoretically fully discharged if Celsius paid off the remainder of the loan.

Celsius Pays $95 Million In Loans On Aave And Compound
Celsius loans on Aave. Source: Zapper
Celsius Pays $95 Million In Loans On Aave And Compound
The loans on Compound. Source: Zapper

Basically, the recent liquidity crisis in the crypto market has hit crypto lenders heavily, such as Voyager Digital and BlockFi.

As for Celsius, the company has halted all customer withdrawals starting June 12 to find a solution to stabilize liquidity, while cutting jobs and hiring restructuring specialists. The company is currently working on paying off the rest of its loan for DeFi protocols.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Visited 48 times, 1 visit(s) today