- Almost a tenth of the asset’s $4.4 billion market value has been rescued.
- More than 23,000 WBTC (equivalent to $440 million) were returned.
After retrieving 400,000 Staked Ethereum in collateral from an Aave loan, the troubled crypto lending company Celsius has paid off virtually all of its outstanding DeFi debt. Almost a tenth of the asset’s $4.4 billion market value has been rescued due to the withdrawal of $415 million in crypto.
According to a Nansen Portfolio tracker, Circle’s USDC stablecoin was refunded to Aave on Tuesday. As a result, it owes the protocol just $8.5 million instead of the original $90 million.
Total Debt Comes Down to Only $59M
More than 23,000 WBTC (equivalent to $440 million) were returned from Celsius’s previous Maker loan last week, and they’ll be added to that total. Aave and Compound debt were the first to be paid off as of Monday, with a total contribution of $95 million in stablecoins to both protocols’ debts, as reported by Etherscan.
DeFi’s total debt across all of its protocols is only $59 million. In addition to the $8.5 million still outstanding on Aave, crypto data tracker Zapper reports that Celsius has $50.3 million in DAI stablecoins on Compound in addition to the DAI debt. Celsius might recoup an additional $227 million by paying off this debt, bolstering its liquidity further.
Celsius has been one of the first industry platforms to freeze user withdrawals—followed quickly by CoinFLEX and Babel Finance—in reaction to bear market liquidity issues. Even though recent events seem favorable for Celsius and its clients, the company’s financial situation is still unclear. The crypto sector is facing one of the most horrific downtrends, with almost all crypto trading at a record low.
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