Cryptocurrency-based financial services platform Celsius Network has paid $120 million to MakerDao protocol to reduce its debt to the decentralized organization responsible for the DAI stablecoin.
Celsius pays $120 million to MakerDAO
Celsius requested hundreds of millions from MakerDAO, which they paid at the time by placing funds in Wrapped Bitcoin (WBTC) as collateral.
With these payments, Celsius closed the possibility of a possible liquidation of their funds by MakerDAO. Let us bear in mind that the decentralization protocol has the power to sell the interested party in the event that they do not pay off the debts assumed.
However, reports suggest that despite having settled much of the debt with MakerDAO, Celsius still has outstanding loans on several other lending protocols.
These include debts of USD $100 million with Compound and USD $175 million with AAVE, without neglecting the fact that another USD $82 million corresponding to Maker is still missing.
The fact that regulatory bodies in the US would be monitoring the evolution of Celsius precisely to assess whether they are acting in accordance with current laws in the face of the difficult situation they are experiencing.