Celsius pays back $120 million to Maker protocol

Celsius Network paid out $120 million more of its Maker Bitcoin debt in 24 hours.

Within the last twenty-four hours, Celsius repaid decentralised lending protocol Maker $120 million across three transactions.

Celsius, a controlled lending company that is presently experiencing a major liquidity issue, has previously loaned hundreds of millions of dollars on Maker using wrapped bitcoin (WBTC) as security.

By reducing its Maker debt, Celsius has reduced the possibility of its loan position being liquidated. In decentralised finance, liquidations occur when traders are unable to repay their debts on time, and their collateralized assets are sold automatically by the protocols.

Recent declines in the price of bitcoin increased Celsius’s risk of liquidation. According to statistics from DeFiExplore, the repayment has helped cut the liquidation price of the WBTC collateral to less than $5,000.

According to on-chain data, Celsius’s commitments are intricate, and the company maintains collateralized loans on several lending protocols. The company owes Maker $82 million, Compound $100 million, and Aave $175 million.

Recent events at Celsius are noteworthy in light of concerns about the platform’s viability and wider concerns about the crypto industry’s health — notably centralised lenders — amid a decrease in the value of key digital assets. When Celsius stated that it would prohibit withdrawals from its platform, these fears exploded.

Also Read: Hacker Wants 10 Bitcoin For Allegedly Stolen Chinese Data