Celsius Network pays off its Aave debt, here’s how much it still owes

Celsius Network has aggressively repaid all of its debt since it first halted withdrawals, exchanges and transfers on its platform. The lending platform had loans spread across various protocols, some of which were dangerously close to liquidating. However, Celsius had paid off its debts, driving down the liquidation price every time before. Now he has moved on to his debt to Aave, a welcome development for the community.

Celsius pays off Aave’s debt

For the past two days, Celsius had been focused on paying off its debt owed on the Aave protocol. The debt amounted to hundreds of millions of dollars, sparking speculation that Celsius would be unable to repay it. But the platform shocked the space by not only paying for it, but eliminating it altogether.

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Celsius then moved his stETH that was on the platform, 410,000 stETH worth $426 million at the time, to an unknown wallet. This decision showed that the lending platform remained committed to repaying these loans.

Currently, Celsius’ remaining debt includes $50 million in DAI owed to Compound and $3.2 million in USDC owed to Notional Finance. With the refunds, the company managed to push back its liquidation on these platforms. However, there is still speculation about Celsius’ solvency and whether it is no longer threatened with bankruptcy.

Not out of the woods

Even though Celsius has repaid its debts, there is still speculation that the lending platform remains insolvent. Vermont’s Department of Financial Regulation (DFR) said it believes the platform has no cash or assets to return to users. He argues that Celsius remains “deeply insolvent”.

CEL price trending at $0.74 | Source: CELUSD on  TradingView.com

The fact that the platform was operating without too much regulatory oversight has been one of the biggest issues so far. This means that users have not been able to benefit from full transparency on the creditworthiness of the platform. The DFR also underscored this by stating: “Due to its inability to register its interest accounts as securities, Celsius clients have not been provided with critical information about its financial condition, investment activities , its risk factors and its ability to repay its obligations to depositors and other creditors. .”

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At the time of writing, withdrawals, exchanges and transfers have been suspended for a month. Over 500,000 user funds are currently locked on the platform and there has been no public communication on when or if Celsius Networks intends to allow users access to their funds.

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