Did Celsius just pay Maker $120 million?

key takeaways

  • Celsius appears to have repaid $120 million to multi-collateral Dai vault #25977 in a series of three transactions.
  • The crypto lending firm suspended withdrawals last month; these refunds could help you regain creditworthiness.
  • Celsius has not confirmed that he owns vault #25977, but this is widely believed to be the case.

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Celsius appears to have paid off $120 million of its debt to Maker, the DeFi protocol behind the Dai stablecoin, though it has not been fully confirmed that Celsius is the payer.

Maker Vault sees debt payments

Celsius may have met some of his outstanding debts this weekend.

Celsius first closed withdrawals, transactions and swaps on June 13. Now the company appears to be paying down its debt in an attempt to regain liquidity.

Data suggests that Multicollateral Dai Vault #25977 saw three significant redemptions between July 3-4, 2022.

Those transactions involved 64 million DAI, 50 million DAI, and 6.2 million DAI. Since DAI is pegged to the value of the dollar, those transactions have a total value of approximately $120 million.

The vault also repaid $22.6 million on July 1, as well as $53.7 million between June 14 and 16.

Can Celsius Restore Solvency?

Large debt payments like these could help Celsius regain solvency and put it in a position to re-enable withdrawals.

These Maker debts are likely to represent only a portion of Celsius’s liabilities, as the company invests in various cryptocurrency and DeFi contracts to generate revenue for its users.

Still, these rebates have lowered the liquidation price of vault #25977 and reduced the likelihood of a forced liquidation.

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Vault #25977 uses Wrapped Bitcoin (WBTC) as collateral and as such will be liquidated if BTC falls to a certain price. On June 13, the vault liquidation price was $16,852, dangerously close to Bitcoin’s typical June price of $20,000.

Now, after last month’s payments, the vault’s liquidation price is $4,966, which leaves a lot more room for prices to vary.

Does Celsius own vault #25977?

Celsius herself has not confirmed that she owns the vault in question, nor has she confirmed that she has paid these debts.

However, MCD vault #25977 is believed to belong to Celsius as it is owned by the Ethereum address starting with 0x87a6. That address is one of many Ethereum addresses that Larry Cermak of The block identified as belonging to Celsius in June.

A Celsius update released on Friday says little about the company’s DeFi investments. Instead, it suggests the company is exploring strategic transactions and liability restructuring to restore solvency and reopen withdrawals.

Other reports on Sunday suggest that the company has laid off a quarter of its employees as a result of its liquidity crisis.

Disclosure: At the time of writing, the author of this article owned BTC, ETH, and other cryptocurrencies.

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