Celsius repaid its $120 million debt to decentralized lending protocol Maker.
The lending platform Celsius, which is facing a serious liquidity crisis, borrowed $120 million from Maker.
Celsiun paid off his debt to Maker and relieved him of the potential liquidation risk of his loan position. In decentralized finance, liquidations occur when users are unable to repay their loans, and protocols automatically purchase collateralized assets.
With the recent decline in Bitcoin value, Celsius faced the risk of massive liquidation. According to data from DeFiExplore, the repayment brought the liquidation price on WBTC collateral to less than $5,000.
On-chain data reveals Celsius’ obligations are highly complex and maintain secured loans across multiple loan protocols. The firm still owes $82 million to Maker, $100 million to Compound and $175 million to Aave.
