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Celsius Network Complete Another $40 Million USDC Repayment for Aave Loan

Written by: Nidhi Kolhapur

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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Jul 12, 2022

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After paying off its $220 million Maker loan fully last week, celsius network has resumed making payments on its remaining Aave and Compound debts. After paying 60 million USDC for its Aave loan over the course of three transactions, the cryptocurrency lender erased all of its wBTC today. Additionally, the business transferred a total of 6k wBTC worth $124 million to FTX by removing 4436 wBTC from Compound.

Only a few wBTC remains in Celsius Compound wallet after all of the wBTC collateral was removed from the Aave wallet. Additionally, the cryptocurrency lender has completed another 40 million USDC repayment for its Aave loan, bringing the total USDC repayment for today to 60 million.

Additionally, the cryptocurrency lender has repaid its compound debt in DAI for roughly 35 million. The remaining debt is now only $140 million. Could Celsius file for bankruptcy or restart withdrawals in the near future?

Prior to now, Celsius had successfully repaid the Maker loan by selling over $500 million worth of wBTC on FTX. The CEL brief squeeze has aided the ongoing community-led Celsius recovery.

Will Celsius File ‘Bankruptcy’?

The cryptocurrency lender liquidated other tokens in addition to paying over $95 million in Aave and Compound loans today. The Celsius Wallets Combined displays an outstanding debt of $140 million, down from $216 million since the morning, according to Zapper.fi.

The total amount owed by Aave is $90 million in USDC and $80,000 in REN. A $50 million DAI debt owed by Compound is also due. A $3 million fUSDC loan from Notional Finance is also held by the cryptocurrency lender and is due on September 25.

As long as short sellers continue to buy CEL tokens in significant amounts and short-sell them, the CEL token short squeeze will likely persist. Additionally, Celsius has shorted CEL tokens. On July 10, the final short squeeze took place.

The most recent long-to-short ratio, according to Coinglass, indicates over 60% of short positions. Customers, however, have begun to wonder whether the business will file for bankruptcy like and three arrows capital due to the company’s silence over its restructuring strategy and the most recent appointment of a new law firm.

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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