Celsius Network Pays Back $120M of Debt to Maker

Celsius Network may have just repaid Maker — the DeFi technology powering the Dai stablecoin — $120 million in $DAI tokens. The company previously used Wrapped Bitcoin (WBTC) as security to borrow hundreds of millions of dollars from Maker. Maker enables the minting of the dollar-pegged stablecoin $DAI when cryptocurrencies are offered as collateral.

Despite not being officially confirmed, statistics from DeFi Explore show that vault #25977 — which is allegedly owned by Celsius Network –  sent loan repayments. A series of repayments started on June 14, with the most recent payment of 64 million $DAI being only a few hours ago at the time of writing.

There were a total of 6.2 million $DAI, 64 million $DAI, and 50 million $DAI in the transaction. Because the value of $DAI is tied to that of the dollar, the total worth of these trades comes to around $120 million.

Source: DeFi Explore

Since the first of July, Celsius has completed four distinct transactions totaling roughly $143 million in order to repay a debt denominated in $DAI stablecoins. According to Defi Explore, which provides information on the company’s collateralized debt position (CDP), the company’s liquidation price is now reported as being $4,967. There is still a balance of $82 million worth of $DAI owed by Celsius.

On June 13, Celsius halted withdrawals, trades, and swaps. An apparent effort has been made to restore liquidity by making payments on debt. Celsius has reduced the danger of its loan position being liquidated by paying down its Maker debt. Decentralized financial protocols automatically liquidate traders’ collateralized assets when they are unable to make loan repayments.