Celsius pays off $120 million of its debt to Maker Protocol

Celsius paid off $120 million of its debt to the decentralized lending protocol Maker in three transactions over the past day.

Celsius, a centralized lending company currently experiencing a serious liquidity issue, had previously borrowed hundreds of millions on Maker with wrapped bitcoin (WBTC) as security.

By reducing its Maker debt, Celsius has reduced the chance of a loan position going into liquidation. When traders are unable to pay back their debts on time, the protocols of decentralized finance (DeFi) "liquidate" them by selling their collateralized assets.

Given concerns about the platform's solvency and larger worries about the solvency across the crypto industry, particularly centralized lenders amid a decrease in the values of major digital assets, Celsius' recent activities are noteworthy.

The announcement by Celsius that it would stop allowing withdrawals from its platform intensified those worries.

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