<p><span style="font-weight: 400;">Within the last 24 hours, Celsius <a href="https://defiexplore.com/cdp/25977">repaid $120 million</a> of its debt owed to decentralized lending protocol Maker across three transactions. </span></p> <p><span style="font-weight: 400;">Celsius, a centralized lending firm currently facing a severe liquidity crisis, had previously borrowed hundreds of millions on Maker using </span><span style="font-weight: 400;">wrapped bitcoin (WBTC) as collateral.</span></p> <p><span style="font-weight: 400;">By paying down its Maker debt, Celsius has de-risked its loan position from potential liquidation. In decentralized finance, liquidations occur when traders cannot repay their loans on time, and the protocols automatically sell their collateralized assets.</span></p> <div id="attachment_155768"class="wp-caption alignnone" style="max-width: 810px;"><img class="has-caption wp-image-155768 size-medium" src="https://www.tbstat.com/wp/uploads/2022/07/celsius-repays-800x150.png" alt="celsius maker" width="800" height="150" /><p class="wp-caption-text"><span style="font-size: 8pt;">Source: DeFiExplore</span></p></div> <p><span style="font-weight: 400;">As the price of bitcoin dropped recently, Celsius faced a heightened risk of liquidation. The repayment has helped reduce the liquidation price on its WBTC collateral to less than $5,000, according to <a href="https://defiexplore.com/cdp/25977">data</a> from DeFiExplore.</span></p> <p><span style="font-weight: 400;"><a href="https://zapper.fi/bundle/0x8aceab8167c80cb8b3de7fa6228b889bb1130ee8%2C0x1cedc0f3af8f9841b0a1f5c1a4ddc6e1a1629074%2C0x87a67e7dc32fdc79853d780c6f516312b4a503b5%2C0xeee27662c2b8eba3cd936a23f039f3189633e4c8%2C0xc131701ea649afc0bfcc085dc13304dc0153dc2e%2C0x84e1f49a6b65882c7365b6a775999cfcb481f22f%2C0xcf7a68127285c7c6c8546ce51b89d7e820f6d294%2C0x4f6742badb049791cd9a37ea913f2bac38d01279%2C0xdbaa0bcec419c47a75efbb93c745aebae3fe9c7b%2C0x3b6543ebe26824bd8156a103063f56ce50f88080%2C0xef22c14f46858d5ac61326497b056974167f2ee1%2C0x3be6d80fdce385358f5762998882efc282df7b9a%2C0x845cbcb8230197f733b59cfe1795f282786f212c%2C0x0fc8415a9b8f535e9f48ba245b1b18a37fb03a90%2C0x8665d75ff2db29355428b590856505459bb675e3?label=Celsius+Wallets+Combined&amp;id=0x7d3a40822eb2701f5d08e3a24b0bfefbd173e1ae&amp;addresses=0x8aceab8167c80cb8b3de7fa6228b889bb1130ee8%2C0x1cedc0f3af8f9841b0a1f5c1a4ddc6e1a1629074%2C0x87a67e7dc32fdc79853d780c6f516312b4a503b5%2C0xeee27662c2b8eba3cd936a23f039f3189633e4c8%2C0xc131701ea649afc0bfcc085dc13304dc0153dc2e%2C0x84e1f49a6b65882c7365b6a775999cfcb481f22f%2C0xcf7a68127285c7c6c8546ce51b89d7e820f6d294%2C0x4f6742badb049791cd9a37ea913f2bac38d01279%2C0xdbaa0bcec419c47a75efbb93c745aebae3fe9c7b%2C0x3b6543ebe26824bd8156a103063f56ce50f88080%2C0xef22c14f46858d5ac61326497b056974167f2ee1%2C0x3be6d80fdce385358f5762998882efc282df7b9a%2C0x845cbcb8230197f733b59cfe1795f282786f212c%2C0x0fc8415a9b8f535e9f48ba245b1b18a37fb03a90%2C0x8665d75ff2db29355428b590856505459bb675e3">On-chain data</a> suggests that Celsius’ obligations are complex and it maintains collateralized loans on multiple lending protocols. The firm still owes </span><span style="font-weight: 400;">$82 million to Maker, $100 million to Compound, and $175 million to Aave.</span></p> <p><span style="font-weight: 400;">Celsius’ recent developments are notable given questions about the platform’s solvency and broader fears about solvency across the crypto industry — particularly centralized lenders — amid a decline in major digital asset prices. Those concerns were kicked into overdrive when Celsius announced that it would halt withdrawals from its platform.</span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>