Celcius Network has repaid US$120 million to Maker, reducing its price of liquidation on its DAI loan to below $5,000, which is collateralized by Bitcoin.
- This repayment of its loan was seen in Vault #25977 through 3 different payments of 6.2M DAI, 50M DAI, and 64M DAI. This also raises its collateralization ratio to 577.81%, a big increase that heavily reduces the risk for investors.
- If Celcius’ price of liquidation was reached the DeFi protocol would automatically sell the assets which were collateralized. This incurs a huge loss for the network and will put Celcius’ users at extreme risk of losing funds held on the network.
- Although Celcius has paid off some of its debt, it still owes $82 million to Maker along with $175 million to Aave and an additional $100 million to Compound meaning Celcius is still over US$357 million in debt.
- This news comes after Celcius had paused all withdrawals, swaps, and transfers due to “extreme market conditions.” Following the news of their debt repayments, the Celcius token had risen % from $0.87 to a high of $1.08, where it is now trading at $0.97.
