Celsius (CEL) has repaid a substantial amount of its outstanding debt to Maker (MKR) protocol since the beginning of the month, signaling that the troubled crypto lending platform is trying to prevent a total collapse amid credible rumors of a default.
As of July 1, Celsius has refunded Dai’s $142.8 million (TOUGH) stablecoin over four separate transactions, follow data from DeFi Explorer. The crypto lender still owes Maker $82 million. Of the $1.8 billion in lifetime investments, the company’s losses now stand at $667.2 million.
With the loan repayment, Celsius’s liquidation price for their Bitcoin (wBTC) wrapped loan has dropped to $4,966.99 Bitcoin (BTC). The reported liquidation price has nearly halved since Celsius posted a $64 million DAI payout on July 4, just hours after it paid $50 million in DAI.
JUST IN: Celsius Network paid another $50 million for it #Bitcoin loan. Their liquidation price fell to $8,840.
– Watcher.Guru (@WatcherGuru) July 4, 2022
Celsius is one of a number of crypto blue-chip companies on on the verge of default after extreme market conditions caused historic losses on multiple positions. The firm Withdrawals halted mid-June due to harsh market conditions and then consulted a new lawyer on the restructuring. Reports that major US bank Goldman Sachs is seeing to get the property of Celsius soon appeared.
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Despite liquidity problems and signs of an impending collapse in its business, C is said to be still paying the same reward as last week. Although Celsius users still receive rewards, they cannot withdraw them due to liquidity constraints.