Celsius crypto, As Lido Finance enabled its withdrawals this week, Celsius Network wants its massive stash of staked Ether (stETH) back. Lido Finance is a liquid staking platform for Ethereum backed by several industry-leading staking providers. The bankrupt crypto lending firm began the process of withdrawing stETH from Lido. As seen in the transaction data of Etherscan, Celsius has requested “the withdrawal of 428,084 stETH in batches of 1,000.”
At the current price of stETH, the stash is valued at nearly $773.20 Million. However, this transaction move follows an almost equal amount of stretch on Monday, May 15th in the process for withdrawal. Notably, when the process of withdrawal ends, Celsius will get an equivalent ETH, while the stETH tokens will be burnt by the liquid staking platform.
However, this transaction from Celsius lengthened the withdrawal queue of Lido. While the Lido queue refers to the number of users who requested to withdraw their stake in Ethereum from its platform. The liquid staking platform enabled the withdrawal for the first time on Monday, by upgrading its version. As it enables the withdrawal, $500K worth of stETH is redeemed within 3 hours.
The Research of An Analyst on Celsius’s Transaction
Tom Wan, a research analyst, also noted in his tweet that “Celsius has sent 428K stETH to Lido Finance to request ETH withdrawal.” As he added, “Lido Buffer: 448K ETH, while the pending stETH to withdrawal is 441.5K, then the remaining Buffer is 6.5K ETH.” The bankrupt crypto lending firm “alone contributes to 96.8% of the total stETH withdrawal request,” as he further noted.
Celsius crypto, In recent hours, Wan also wrote that “the buffer comes from execution layer rewards (MEV/Priority Fees), Partial withdrawals and Daily Deposits,” as shown in the Dune Analytics chart. In another tweet, Wan provided Celsius’s address and noted it received the stETH from Celsius’s tagged address around 1.5 hours ago.
Lastly, Wan clearly mentioned that “nothing confirmed yet while waiting for an official announcement from Celsius in the upcoming days.”
Last week, Celsius officially shared that its withdrawals begin for those who opted into the settlement with the UCC and Custody Ad Hoc Group. As only “eligible Custody account users were able to opt into the Custody Settlement in exchange for electing not to pursue any Custody-related claims or causes of action against Celsius and for voting their Custody claims in favor of the Plan.”
Moreover, “the distribution of eligible assets will happen in two stages. The first distribution-36.25% of each settling Custody account holder’s Custody account balance – opened on May 9th.” However, the users will not be able to withdraw assets until all account information is up to date and verified.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/17/lending-firm-celsius-crypto-more-than-420k-lido-staked-eth/