Celsius Network paid off all dues, freeing $470M from Maker protocol

Celsius Network, the crypto lending platform, has now repaid all its loans: Image by Janeb13 from Pixabay

YEREVAN (CoinChapter.com) — Cryptocurrency lending platform Celsius Network has paid back its remaining dues to Maker protocol.

According to reports, it had $41.2 million left to repay Maker, one of the biggest decentralized finance (DeFi) platforms.

“Celsius Network has completely paid off its Bitcoin loan. Their liquidation price has dropped to $0.00,”
Watcher Guru tweeted.

The liquidation stood at $2722.27 before the payment, according to the platform.

Maker protocol releases over $470 million to Celsius

Following the repayment of the loan, Celsius was able to reclaim $440 million in collateral from Maker protocol.

Data available on Etherscan recorded a transaction from the wallet of Celsius to Maker. Meanwhile, records on DefiExplorer confirm that the loan repayment was made in DAI, the local stablecoin of the Maker protocol.

As a result, Maker released 21,962 Wrapped Bitcoin (WBTC) to Celsius, which the DeFi platform had pledged as collateral for the loan. The released WBTC is worth over $470 million. While writing, WBTC trades at $21,553, according to CoinMarketCap.

Celsius has now repaid all its loans. Credit: DefiExplorer

Since the loan on Maker protocol was over collateralized, the amount Celsius had placed as dept position exceeded its loan. Hence, it has now managed to free over ten times its loan amount.

Celsius was on a loan repayment spree

In an attempt to avert a total collapse, Celsius has been on a loan repayment spree. In the last seven days, it has reportedly repaid Maker protocol a combined value of $224 million in outstanding loans.

While those payments came in installments, the previous one was by far the largest. On July 4, it paid $64 million, pushing its liquidation below the $5000 mark.

On the same day, Celsius also paid $67 million in debt to liquidity pools Aave and Compound.

The recent development comes as a much-needed relief for the platform. It can now use the funds to boost its liquidity reserves while it struggles to stay in business.

CEL, the network’s inhouse token, rallied about 10% on the news. However, it plunged back within hours after investors withdrew profits.

At the time of writing, CEL fetches $0.7727, according to CoinMarketCap. With its dues now repaired, investors will be looking to see if the Celsius Network can recover.