Celsius repays $142.8m loan in MakerDAO protocol

In July, Celsius Network, the crypto-lending platform, repaid $142.8 million in the DAI stablecoin to settle a loan in the MakerDAO DeFi protocol.

The liquidation price of Celsius’s WBTC collateral fell to below $5,000. As of writing, the asset stood at around $20,370.

On June 13 the platform suspended withdrawals, exchanges and transfers between accounts due to extreme market conditions. Analysts suggested the real cause was a liquidity crisis.

According to media reports, leading investors refused to provide the company with additional financing.

Georgetown University law professor Adam Levitin said that Celsius’s management had bet on an “adventure with resurrection.” In his view, the firm’s bankruptcy was virtually inevitable.

According to Zapper, the company has outstanding debts in several protocols: MakerDAO (~$77m), Compound (~$100m), Aave (~$178m) and Notional Finance (~$3.2m).

In Ethereum 2.0’s staking deposit contract, Celsius has 324,576 ETH locked, worth about $376m.

Earlier, the investment online platform BnkToTheFuture, which owns a stake in the company, presented three paths to rescue Celsius.

Media reported that the crypto lender cut about 150 employees amid the ongoing crisis.

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