Amidst the bleakness of insolvency, Celsius makes a significant payback to the interest-yielding DeFi protocol, Compound as it transfers $10 million of DAI stablecoin to the latter today.
As per the transaction on Etherscan, the firm repaid 10 million DAI and also received 166 COMP (equivalent to $5,200). In the past week too, Celsius made several repayments.
The data suggests that in a sequence of transactions, the firm paid $53.6 million DAI to its treasury with Oasis Protocol which is yet another yield-bearing DeFi platform.
Celsius makes use of several DeFi protocols to generate interest for its users.The recent $10 million payment subtly hints at the firm closing its positions with the services in order to recover liquidity and also to re-open withdrawals for its clients.
It is also worth noting that even if a $10 million payment looks like a strategy toward solvency, it hardly makes up a significant proportion of Celsius’ business.
In May the company witnessed an influx of $397 million and $1 billion in outflows. And if the demands continue to remain high, then the firm might not afford withdrawals.
Also read: Bnk To The Future CEO to Rescue Celsius With a Recovery Plan
