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Celsius Network pays off its Aave debt, here’s what you still owe

Celsius Network pays off its Aave debt, here’s what you still owe

Celsius Network has aggressively paid off all of its debt since it first stopped withdrawals, trades, and transfers on its platform. The lending platform had loans spread across various protocols, some of which were dangerously close to being settled. However, Celsius had paid his debts, reducing the settlement price on all previous occasions. Now he has moved on to his debt to Aave, a welcome development for the community.

Celsius pays off Aave debt

For the past two days, Celsius had been focused on paying off his debt to the Aave protocol. The debt ran into the hundreds of millions of dollars, sparking speculation that Celsius might not be able to pay it. But the platform shocked the space by not just paying for it, but removing 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’s 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 delay its liquidation on these platforms. However, there is still speculation about Celsius’s solvency and whether it is no longer in danger of bankruptcy.

not out of the woods

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

CEL price tends to $0.74 | Source: CELUSD on TradingView.com

The fact that the platform was operating without 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 about the solvency of the platform. The DFR also underscored this by stating: “Because of its inability to record its interest accounts as securities, Celsius clients have not received critical information about their financial condition, investment activities, their risk factors and their ability to pay their bills. obligations to depositors. and other creditors. .”

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At the time of writing, withdrawals, exchanges, and transfers have been suspended for one month. Currently, over 500,000 user funds are 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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