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Bitcoin’s price decrease is pressuring the Celsius Network into taking on more DAI debt as it battles to tablelike its ecosystem.
Bitcoin’s downward price action is threatening to drag many ecosystems with it. One of these is the Celsius Network. Celsius has been one of the high yield protocols in the market. Things seem to be going south for the network as the BTC price stumbles down the bearish path.
The Celsius Network has resolved to add its wBTC collateral to the Market protocol to keep things in control. However, the decreasing BTC price isn’t making the situation any better. With each addition to the collateral, a new liquidation point is established.
Liquidation At $18k With 21,960 BTC
A day ago, an address associated with the Celsius Network was revealed to have added about 2,000 wBTC as collateral to the Marker protocol. At the time of the report, the wallet held the position with 19,919 wBTC with around $262 million in DAI debt.
At that time, Celsius had staked 17,919 wBTC in the Marker protocol and borrowed 278 million DAI. This made Celsius the highest debtor in the Marker protocol. The liquidation position was set at $22 584.
As BTC’s price continued to exhibit uncertainty, Celsius moved to put another cushion further and push down the liquidation point. As such, a further 2,041 wBTC was added to reach a total of 21,960 wBTC and a debt of 278 million DAI (or $278 million).
The addition moved the liquidation point down to $18,388. However, the market conditions would soon force another move.
Liquidation At $16k With 23,962 BTC
Further reports reveal that Celsius has added another 2,001 wBTC as collateral to bring the total to around 23,962 on the Marker protocol. It still has 278 million DAI in debt. The addition moved the liquidation point further down to the $16,852 threshold.
It’s unclear whether BTC’s price will dip or bottom out before it reaches the $16.8k mark. If it approaches that point, Celsius will have to add on the collateral and hold more debt or risk heavy liquidation and possible collapse of its ecosystem.
Yesterday due to Celsius token Sharp Fall, Team Transferred $320M Worth Of BTC And ETH To centralized Exchanges like FTX.