Key Takeaways
- Crypto lending firm Celsius repaid the vast majority of its debt to Aave at present and managed to unlock 400,000 stETH from the protocol.
- It has additionally began unwinding positions on Compound, although it nonetheless has 10,000.94 wBTC ($199 million) locked within the protocol.
- Final week Celsius managed to utterly unlock and shut down its MakerDAO vault, rescuing a 21,962 wBTC place (value about $456 million on Jul. 7).
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Celsius has unlocked 400,000 stETH from Aave. The crypto lending firm has just lately been winding down its positions throughout the DeFi panorama, presumably in an effort to take care of its extreme liquidity disaster.
Saving 400,000 stETH From Aave
Celsius retains unwinding its DeFi positions.
On-chain information present {that a} wallet related to Celsius Community repaid the vast majority of its debt to lending protocol Aave at present at 11:49 UTC, sending greater than $63.5 million in USDC to unlock collateral of 400,000 stETH, a sum value about $418,848,000 on the time of writing.
The pockets moreover unlocked 350,020 UNI ($2 million) and 529,94 COMP ($25,600) from completely different lending protocol Compound, and redeemed 300,000 xSUSHI for 395,060.92 SUSHI ($458,200) from decentralized trade SushiSwap.
Celsius is a “CeFi” crypto lending firm, that means a centralized entity that leverages yield alternatives present in decentralized finance (DeFi) protocols for its prospects. The agency has been dealing with liquidity points following what it known as “excessive market circumstances.” It controversially paused buyer withdrawals final month to be able to put itself “in a greater place to honor, over time, its withdrawal obligations.”
The corporate could also be unwinding its DeFi positions in an try to strengthen its steadiness sheet because it doubtlessly prepares to file for chapter. Final week Celsius unlocked a 21,962 wBTC place (value about $456 million on Jul. 7) from decentralized stablecoin issuer MakerDAO. It could have suffered from a $1 billion loss on that place alone.
DeBank information show that Celsius should still have some unwinding to do. The identical pockets that unlocked 400,000 stETH at present nonetheless has 10,000.94 wBTC ($199 million) locked on Compound and about $27 million in LINK, stETH and SNX remaining on Aave. These positions will respectively want $50 million and about $8.5 million to be unlocked. Celsius may personal different wallets with additional DeFi debt.
Disclosure: On the time of writing, the creator of this piece owned ETH and a number of other different cryptocurrencies.
