Celsius reimburses Compound $10M DAI
Today, the ailing crypto lending business returned $10 million to Compound in what seems to be a move to regain solvency.
Today, Celsius made a substantial payment to Compound, transferring $10 million in DAI to the latter firm. Celsius has transferred $10 million worth of DAI stable coin to Compound Finance, a popular DeFi business that pays interest.
The Etherscan block explorer reveals that the company refunded 10 million DAI and received 166 COMP ($5,200) in compensation. Celsius has made a couple of additional repayments throughout the previous week. It sent $53.6 million DAI to its vault using Oasis Protocol, another yield-bearing DeFi platform, in a series of transactions.
Celsius employs many DeFi protocols to generate consumer interest. Its most recent $10 million payment suggests that it is reducing positions with these providers in order to rebuild liquidity and reopen consumer withdrawals. Although this is certainly a step toward solvency, today’s $10 million payment represents a negligible portion of Celsius’s overall operations.
The week of May 6 witnessed $397 million in inflows and $1 billion in withdrawals for the corporation. Therefore, the company may continue to be unable to afford withdrawals if demand stays excessive.
Sunday, Celsius Posted an Update
One week has passed since Celsius halted service. On June 13, the company stopped withdrawals, trades, and swaps. In reality, today’s transaction follows Celsius’s statement and confirmation that the suspension would remain.
“Stabilizing our liquidity and operations is our primary aim,” the company declared on June 19. The company noted that this “will need time” and that it would “continue to work around the clock.”
Celsius said that it would work with regulators and government authorities. Four American states initiated an inquiry into the matter last week.
Celsius said that Twitter spaces and AMAs will be suspended in order to prioritise the settlement of the present crisis.