Celsius Transferred $10 Million DAI To Compound

The instance of Celsius was in the limelight in the past week. And now recently the crypto lender has carried out a considerable transaction as it transferred $10 Million of DAI to Compound which is a prominent interest-yielding DeFi service.

According to the Etherscan block explorer, the entity repaid 10 Million DAI and also collected 166 COMP which equates to $5,200. Apart from this, Celsius has also carried out other repayments within the last week. For instance, it paid $53.6M DAI to its vault with Oasis Protocol.

The network uses several DeFi protocols to generate interest for its clients. And this recent payment of $10 Million apparently signifies that it is closing positions with the services to open withdrawals again and re-gain liquidity. Although it might be a move towards solvency.

Early in May, the entity witnessed $397 Million in inflows and $1 Billion in outflows. And given this kind of situation, it is possible that they won’t be able to afford withdrawal if the demand stays immensely high.

One week has passed since the crypto lender halted its services. It took down withdrawals, transactions, and swaps in mid-June. This transaction comes following Celsius’ announcement to update that the service’s suspension would continue.

It is Working On Resolving The Situation

According to the company, it highlighted on June 19 that its focus continues to be on stabilizing its operations and liquidity. And that this will take time and it will continue to work around the clock.

Furthermore, it cited that it will cooperate with the officials and regulators. Only last week, the regulators from four of the American states initiated an investigation of the situation. And the firm added that it would halt Twitter spaces and AMAs because it needs to prioritize the resolution of the present situation.

The decision of the company created a panic situation in the market as the crowned crypto Bitcoin (BTC) fell considerably in price. And seemingly, the investors are quite dissatisfied with Celsius. The users on social media are attempting to create a short squeeze to power up the prices artificially and benefit from it.

In Fact, the Celsius’ native token did rise following the firm’s announcement to freeze the funds, CEL earlier dropped from $0.44 to $0.15 and currently, it is valued at $0.94.

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