Celsius Repays $10M DAI to Compound

Keys to take

  • Celsius today made a $ 10 million repayment to Compound Finance, probably trying a step toward solvency.
  • Celsius turned off withdrawals, transactions, and exchanges a week ago. You have not yet re-enabled these services.
  • The price of the Celsius CEL token is rising, but probably due to a short pressure rather than a genuine recovery.

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Celsius made a major payment to Compound today as it transferred $ 10 million from DAI to the latter service.

Celsius returns $ 10 million

Celsius sent $ 10 million of stablecoin DAI to Compound Finance, a popular DeFi interest-producing service.

Blockchain explorer Etherscan reports that the company paid 10 million DAI while collecting 166 COMP ($ 5,200). Celsius also made other refunds over the past week. In a series of transactions, he paid $ 53.6 million DAI to his vault with Oasis Protocol, another high-performance DeFi platform.

Celsius uses various DeFi protocols to generate interest for its customers. Your last $ 10 million payment probably means you are closing positions with those services to regain liquidity and reopen withdrawals for your clients. While this is likely to be a step towards solvency, today’s $ 10 million payment is only a small fraction of Celsius’ activity.

In the week of May 6, for example, the company recorded $ 397 million in revenue and $ 1 billion in outflows. Therefore, the company may still be unable to pay the withdrawals if demand remains too high.

Celsius posted an update on Sunday

Celsius suspended services a week ago. The company shut down withdrawals, transactions and exchanges on June 13th. In fact, today’s transaction comes shortly after Celsius released an update and confirmed that the suspension will continue.

“Our goal remains to stabilize our liquidity and operations,” the firm wrote on June 19. He added that this “will take time” and that “it will continue to work 24 hours a day”.

Celsius also said he would cooperate with regulators and officials. Last week, regulators in four U.S. states launched an investigation into the situation.

Celsius added that he will pause Twitter and AMA spaces to prioritize resolving the current situation.

CEL prices are rising

Celsius’ decision to suspend transactions has caused panic in the cryptocurrency market as Bitcoin prices have fallen sharply. The price of BTC started at $ 28,000 on June 12, but fell below $ 18,000 during the week. BTC is valued at $20,500 at the time of writing.

Investors seem to be increasingly dissatisfied with the Celsius course of action. Social media users are trying to organize short grip to artificially raise prices and benefit from the brief advantage it might derive.

In fact, the value of the Celsius native token has increased since the company announced it would freeze funds. The CEL price dropped from $ 0.44 to $ 0.15 on June 12th. It is now valued at $ 0.94.

It seems that this recovery is largely due to the attempt at short grip. However, if Celsius manages to reopen services, it could help the asset regain its fair value.

Disclosure: At the time of writing, the author of this piece had BTC, ETH, and other cryptocurrencies.

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