Celsius (CEL) has repaid a substantial amount of its outstanding debt to the Maker Protocol (MKR) since the beginning of the month, signaling that the struggling crypto lending platform was trying to avoid a complete collapse amid credible rumors of ‘insolvency.
Since July 1, Celsius has redeemed $142.8 million worth of Dai (DAI) stablecoins across four separate transactions, according to data from DeFi Explorer. The crypto lender still owes $82 million to Maker. Out of $1.8 billion in lifetime investments, the company’s losses currently stand at $667.2 million.
With the loan repayments, Celsius’ liquidation price on its Wrapped Bitcoin (wBTC) loan fell to $4,966.99 Bitcoin (BTC). The liquidation price has reportedly fallen by almost half since Celsius posted a DAI payment of $64 million on July 4, just hours after paying $50 million in DAI.
JUST IN: Celsius Network has paid an additional $50 million for its #Bitcoins ready. Their liquidation price fell to $8,840.
—Watcher.Guru (@WatcherGuru) July 4, 2022
Celsius is among several crypto blue chip companies on the brink of insolvency after extreme market conditions triggered historic losses on multiple positions. The firm suspended withdrawals in mid-June due to extreme market conditions and then brought in new legal counsel to advise on the restructuring. Reports that US mega-bank Goldman Sachs was looking to acquire Celsius’s assets quickly surfaced.
Related: Crypto platform tells savers how it’s different from Celsius Network
Despite liquidity issues and signs of an impending collapse in business, Celsius reportedly continued to pay out rewards last week. Although Celsius users were still receiving rewards, they were unable to withdraw them due to liquidity constraints.