News

Celsius Network Pays Down Its AAVE Debt, Showing Commitment and Solvency to Debtor Platforms

single-image

Celsius Network has been aggressively paying down all of its debt since it first stopped withdrawals, swaps, and transfers on its platform. The lending platform had loans spread across various protocols, some of which were dangerously close to being liquidated. However, Celsius had paid off its debts, pushing the liquidation price further down each time before. Now it has moved on to its debt from Aave, a welcome development for the community.

Celsius Pays off Aave Debt

Over the last couple of days, Celsius had turned its focus to paying down its debt owed on the Aave protocol. The debt went into the hundreds of millions of dollars, sparking speculations that Celsius would be unable to pay it down. But the platform has shocked the space by not only paying it down but completely eliminating it.

Stay in the know on crypto by frequently visiting Crypto News Today

Celsius had then moved out its stETH that was on the platform, 410,000 stETH worth $426 million at the time, to an unknown wallet. This move showed that the lending platform remained committed to paying off these loans. 

Presently, the remaining Celsius debt comprises $50 million in DAI owed to Compound and $3.2 million in USDC owed to Notional Finance. With the repayments, the company has managed to push back being liquidated on these platforms. However, there are still speculations on whether Celsius is solvent and if it is no longer at risk of bankruptcy.

Not Out Of The Woods

Even though Celsius has been repaying its debts, there are still speculations that the lending platform remains insolvent. Vermont’s Department of Financial Regulation (DFR) has come out to say that it believes that the platform does not have any liquidity or assets to return to users. It maintains that Celsius remains “deeply insolvent”.

The fact that the platform was operating without much regulatory oversight has been one of the biggest pain points so far. This meant that users have been unable to receive full transparency about the platform’s solvency. The DFR highlighted this too, saying, “Due to its failure to register its interest accounts as securities, Celsius customers did not receive critical disclosures about its financial condition, investing activities, risk factors, and ability to repay its obligations to depositors and other creditors.”

As of the time of writing, withdrawals, swaps, and transfers have been suspended for a month. It has over 500,000 users’ funds currently stuck on the platform and there has been no public communication on when, or if, Celsius Networks intends to let users have access to their funds. Read More at BITCOINISTCRYPTOCASTER® - DECENTRALIZED FREEDOM!


Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
SOL – DLvdMu85dW6pZMhw2E4S3pp81qQQGpy5UcdTsFEFBu4b
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt

You may also like