Aave is a decentralized money market protocol where users can lend and borrow cryptocurrency across 20 different assets as collateral. The protocol has a native token called AAVE, which is also a governance token that lets the community decide the direction of the protocol in a collective manner. Lenders can earn interest by providing liquidity to the market, while borrowers can borrow by collateralizing their cryptoassets to take out loans from the liquidity pools.
The cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. lender is left with an $8 million debt to Aave, and a slightly higher one to the DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. Compound protocol.
- Celsius pagó a Aave poco más de USD $80 millones, reduciendo su deuda.
- The transaction gave him access to a guarantee of 400,000 stETH.
- The lender seeks access to liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. by paying debts in DeFi.
The beleaguered cryptocurrency lending platform, Celsius Network a network refers to all nodes in the operation of a blockchain at any given moment in time. , extrajo poco más de USD $400 millones de Aave a medida que trabaja para reducir sus deudas con los protocolos de finanzas descentralizadas (DeFi).
According to reported CoinDesk a wallet a place where cryptocurrency users can store, send and receive digital assets. linked to Celsius transferred this Tuesday USD $81.6 million in the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. USD Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. (USDC) to automated decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. lending protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. Aave . The payment, which you can check in the data inEtherscanThe lender’s debt to the platform a place to buy, sell and store cryptocurrency was reduced and several million dollars in collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. was released.
Specifically, Celsius was able to access a sum of 400,000 of staked Ether the form of payment used in the operation of the distribution application platform, Ethereum. (stETH) valued at about USD $418 million at the time of going to press. The funds in stETH, a type of token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. linked to the currency currency is a medium of exchange that defines value. of Ethereum, ETH, were deposited as collateral for a loan taken out by that firm from the protocol. Aave .
The move reduced the debt of Celsius with Aave to approximately USD $8.4 million, according to CoinDesk y The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. .
Celsius seeks liquidity through debt repayment
Celsius is one of the industry’s crypto lenders facing liquidity issues amid prolonged price turmoil in the market. The platform suspended withdrawals on 12 June last, citing the “ extreme market an area or arena, online or offline, in which commercial dealings are conducted. conditions “and since then he has been weighing his options to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the problems that concern him.
In recent days, the service has been paying off some debts con varias plataformas DeFi para poder acceder a los fondos depositados como garantía. La semana pasada, Celsius paid its USD $228 million debt with MakerDAO another DeFi lending platform, and recovered USD $440 million of collateral in tokens wrapped Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. ( WBTC ).
More recently, the firm has made efforts to reduce its debts with Aave yCompound. As reported by DiarioBitcoin the lender pagó on Monday some USD $78 million in USDC to Aave after which it released about USD $124 million in WBTC.
However, he still has several payments to make to pay off all of his obligations. According to CoinDesk which cited data from Zapper , Celsius still owes about $59 million to DeFi Protocols. Specifically, $8.5 million to Aave y USD $50 millones aCompoundwith about $227 million in various tokens locked together on both platforms.
She’s not the only one in trouble
While withdrawals remain frozen and the customers of Celsius aún no pueden disponer de sus fondos, los informes sugieren que la empresa estaría considerando go bankrupt . The platform has also hired legal advisors to help it evaluate possible solutions.
Last week it had been reported that the crypto lender had laid off around 150 employees in an attempt to restructure to deal with the crisis. In addition, according to reports, Celsius has been sending funds in cryptocurrencies to various centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. exchanges, possibly seeking access to more liquid assets.
Celsius is not the only crypto lender facing the financial fallout caused by the sharp drop in the cryptocurrency market. Other platforms such as Babel Finance , Vauld y CoinLoan also have taken steps to curb withdrawals amid market turmoil.
- Celsius faces lawsuit, reportedly lost $390 million in high-risk trades
- Three Arrows Capital capital is most commonly defined as the large sum of money you would use to invest. received a notice of default for non-payment of more than $650 million in loans
- Goldman Sachs seeks to raise $2 billion to buy Celsius assets, report says
Article by Hannah Estefania Perez / DiarioBitcoin
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