Celsius Pays Off Aave Loan, Moves $418M 'stETH' Stack to Unknown Wallet

The liquidity-stricken crypto lender fully paid off its debt to the decentralized finance protocol, freeing $26 million in tokens as part of its latest debt restructuring maneuver.

AccessTimeIconJul 12, 2022 at 10:27 p.m. UTC
Updated Jul 13, 2022 at 4:51 p.m. UTC

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Celsius Network, the troubled crypto lender, fully paid off its debt on the decentralized finance (DeFi) lending protocol Aave, freeing up collateral through a maneuver almost identical to one it conducted last week on the rival protocol Maker.

Transactions on the blockchain show Celsius's wallet transferred $8.4 million in Circle’s USDC stablecoin Tuesday afternoon to Aave. The move closed Celsius's loan and freed the remainder of tokens pledged on the platform as collateral against the debt – namely some $10 million in stETH, a derivative type of the ether (ETH) token, $13 million in Chainlink's LINK tokens and $3 million in Synthetix's SNX.

And in what appears to be a separate move, Celsius transferred its known stETH holdings – some 416,000 tokens, or $418 million of worth – to another, unlabeled wallet, a transaction history shows.

CoinDesk - Unknown

Celsius paid off $8.4 million in USDC debt to Aave. (Nansen)

Last week, as reported by CoinDesk, Celsius fully paid off and closed its loan on Maker, one of the largest DeFi lending protocols, and freed up $440 million of collateral pledged against the loan, denominated in wrapped bitcoin (wBTC) tokens. Earlier Tuesday, the crypto lender reduced its debt by $95 million on Aave and freed up 400,000 stETH tokens, worth $410 million at the time of publishing, as CoinDesk reported.

What's next for Celsius

Celsius is one of the crypto lenders facing financial troubles in the latest liquidity crisis in crypto. It suspended withdrawals starting June 12, cut jobs and hired restructuring experts to advise on its financial situation.

Now that the firm has closed its loans from Aave and Maker, Celsius might turn its focus on paying off the last remaining DeFi debt, which is a loan from the Compound lending protocol.

At press time, the wallet linked to Celsius owes some $50 million in USDC stablecoin to Compound, blockchain data firm Nansen's portfolio tracker shows. If Celsius pays off the rest of its outstanding debt, it can unlock 10,000 wBTC tokens currently stuck on the platform, worth $194 million at current market prices.

CoinDesk - Unknown

Celsius has reduced its remaining debt on DeFI protocols to $50 million by Tuesday. (Nansen)

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

CoinDesk - Unknown

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.