Celsius Network Clears its Bitcoin Loan, Resetting its Liquidation Price to $0

Summary:

• Celsius Network has wholly paid disconnected its Bitcoin loan, resetting its liquidation terms to zero.
• The lending level has been paying disconnected its indebtedness connected the Maker Protocol since mid-June and aft it announced pausing of withdrawals.
• The implicit repayment of its Bitcoin indebtedness could beryllium portion of Celsius Network’s restructuring program and committedness to making each its users whole.

Celsius Network has wholly paid disconnected its Bitcoin indebtedness and frankincense resetting its liquidation terms backmost to zero.

According to DeFiExplore.com, Celsius Network paid a full of 41.2 cardinal DAI to adjacent its indebtedness from the Maker protocol and retrieve 21,962 Wrapped Bitcoin (BTC) arsenic collateral.

Celsius Has Been Paying Off its Bitcoin Loan Since June 14th.

The transaction has been highlighted successful the screenshot below. Also, from the screenshot, it tin beryllium observed that Celsius Network has been making payments connected its Bitcoin indebtedness since June 14th and instantly aft it paused withdrawals connected June 13th.

In addition, it tin beryllium observed that Celsius had antecedently been adding much collateral to its indebtedness from mid-May and aft the crypto markets were shaken by UST’s collapse.

Celsius’ repayments since June 14th and collateral Added since May 12th. Source, DeFiExplore.com

Celsius Clearing its Loan Could Be Part of its Restructuring Plans and Making its Users Whole.

Celsius Network clearing its indebtedness could unfastened the doors to a implicit oregon partial resumption of withdrawals connected the lending platform. The determination could besides beryllium portion of Celsius’ restructuring plans aft it precocious let go of 25% of its workforce.

A betterment program has already been projected by the squad astatine Bnk to The Future Capital, which had earlier been engaged by Celsius to negociate the assemblage portion of its $750 cardinal Series B backing round. The restructuring program consists of three proposals:

• A restructuring of Celsius Network and let depositors to payment from immoderate signifier of betterment done fiscal engineering.
• A excavation of Bitcoin whales to co-invest with the assemblage successful a mode akin to however Bitfinex handled its 2016 hack.
• An operational plan that allows a caller entity and squad to rebuild and marque depositors whole. 

Bnk To The Future Capital laminitis and CEO Simon Dixon has continually stressed connected Twitter the value of a ‘depositors first’ attack successful sorting retired the issues astatine Celsius Network. In 1 of his astir caller Twitter updates, helium stressed that Celsius Network needed to debar filing for bankruptcy similar Mt. Gox did backmost successful 2014. did. He explained:

I adhd that the Celsius Network assemblage volition request to use unit to forestall crypto assets being sold successful Chapter 11 similar we did successful Mt. Gox. If not depositors suffer & inexpensive Bitcoin will beryllium scooped up astatine the outgo of guiltless misled investors. Let’s forestall that #DepositorsFirst.