Did Celsius Just Repay $120M to Maker?

Key Takeaways

  • Celsius appears to have repaid $120 million to multi-collateral Dai vault #25977 in a sequence of three transactions.
  • The crypto lending agency suspended withdrawals final month; these repayments might assist it regain solvency.
  • Celsius has not confirmed that it owns vault #25977, however it’s extensively believed that that is the case.

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Celsius seems to have repaid $120 million of its debt to Maker, the DeFi protocol behind the Dai stablecoin, though Celsius just isn’t fully confirmed to be the payor.

Maker Vault Sees Debt Repayments

Celsius might have made good on a part of its excellent money owed this weekend.

Celsius first shut down withdrawals, transactions, and swaps on June 13. Now, the agency appears to be repaying its debt in an try and regain liquidity.

Information means that multi-collateral Dai vault #25977 noticed three important repayments between Jul. 3 and Jul. 4, 2022.

These transactions concerned 64 million DAI, 50 million DAI, and 6.2 million DAI. As DAI is pegged to the worth of the greenback, these transactions are value roughly $120 million in whole.

The vault additionally noticed $22.6 million repaid on Jul. 1, in addition to $53.7 million repaid between Jun. 14 and Jun. 16.

Can Celsius Regain Solvency?

Giant debt repayments akin to these might assist Celsius regain solvency and put it ready to re-enable withdrawals.

These Maker money owed seemingly make up only one a part of Celsius’ obligations, as the corporate invests in varied crypto and DeFi contracts to generate income for its customers.

Nonetheless, these repayments have lowered vault #25977’s liquidation worth and lowered the chance of forcible liquidation.

Vault #25977 makes use of Wrapped Bitcoin (WBTC) as collateral, and as such, it will likely be liquidated if BTC falls to a sure worth. On June 13, the vault’s liquidation worth was $16,852—dangerously near Bitcoin’s typical June worth of $20,000.

Now, after the previous month’s funds, the vault’s liquidation worth is $4,966, leaving rather more room for costs to range.

Does Celsius Personal Vault #25977?

Celsius itself has not confirmed that it owns the vault in query, nor has it confirmed that it has repaid these money owed.

Nonetheless, MCD vault #25977 is believed to belong to Celsius as it’s owned by the Ethereum handle starting with 0x87a6. That handle is one in every of many Ethereum addresses that Larry Cermak of The Block recognized as belonging to Celsius in June.

An replace from Celsius printed on Friday says little in regards to the agency’s DeFi investments. As an alternative, it means that the agency is exploring strategic transactions and legal responsibility restructuring as a way to regain solvency and reopen withdrawals.

Different studies from Sunday counsel that the agency has laid off 1 / 4 of its workers within the wake of its liquidity disaster.

Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and different cryptocurrencies.

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