Crypto lending platform Celsius has paid off all its debt to DeFi platforms.
Celsius, who had paid off his debts from Aave and Maker before, got rid of a significant burden by paying off his debt to Compound.
Faced with liquidity problems, Celsius Network paid off its debt to Compound and released $200 million of pledged collateral.
Celsius paid $50 million to Compound earlier in the day and got back 10,000 Wrapped Bitcoins. 10,000 WBTC is worth about $195 million.
Data from Etherscan shows that a Celsius-affiliated wallet transferred $50 million in DAI to Compound. After the money was given, Compound returned 6,900 and 3,100 WBTC to Celsius in two parts.
It is worth remembering that Celsius’s loans are over-collateralised. In this case, it means that the borrower or institution locks more digital assets than the loan value.
Payment of overcollateralized loans is positive for Celsius’s liquidity. Because in this case, more than the paid debt is taken back.
Celsius has repaid $223 million to Maker, $235 million to Aave and $258 million to Compound since the beginning of July.
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