The crypto lender, Celsius Network has withdrawn $440 million collateral from the Maker Protocol after paying off the full loan amidst liquidation crisis.
With this loan settlement, Celsius finally overcame the liquidation threat that surged upon it.
An on-chain data implies that Celsius’s wallet address transferred the remaining $41.2 million loan in DAI tokens. In return, Maker Protocol has returned 21,962 WBTC, which Celsius deposited as collateral for the loan. This WBTC amount is equivalent to $448 million according to the current market price of $20,400.
According to crypto analysts, the settlement is a significant liquidity boost for Celsius and it will bring stability to its shattered finance. Before this, Celsius had remunerated $120 million stablecoin debt to Maker on July 5.
Celsius suspended withdrawal and transfer of crypto on its platform in June after the liquidation prompted it to prevent panic withdrawals.
“The debt repayment to Maker is a key milestone for Celsius that should give users and other stakeholders some hope that the company can continue to work through its loan book,” said Alex Tapscott, managing director of investment firm Ninepoint Partners’ digital asset division.
Also Read: How Celsius crashed Crypto Market?
Now, some crypto analysts and intellectuals envisage that Celsius could sell its released assets on centralized exchanges or over-the-counter to fulfill creditor demands and customer withdrawals.
