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Tether Discloses Celsius' Loan Liquidation Processtether.to/en/tether-discloses-celsius-loan-liquidation-process/
103 sats \ 2 comments \ @cryptocoin 8 Jul 2022 bitcoin
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1 sat \ 0 replies \ @cryptocoin OP 8 Jul 2022
Tether CTO replying to a claim that Tether was underwater on the loan:
Incorrect. Liquidation happened when while the price was well above 100% and in fact Tether returned the excess to Celsius.
https://twitter.com/paoloardoino/status/1545445106270060545 https://nitter.net/paoloardoino/status/1545445106270060545 <-- May be easier to read
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1 sat \ 0 replies \ @cryptocoin OP 8 Jul 2022
The Tether loan that was taken out by Celsius was an overcollateralized loan denominated in BTC (130%+), and the decision to liquidate the collateral to cover the loan was a part of the original terms of the agreement between the two entities and reconfirmed in writing before the start of the liquidation event.
Once the loan was covered, Tether returned the remaining part to Celsius as per its agreement. Celsius position has been liquidated with no losses to Tether.
While the media, critics and community were wrongly fixated on Tether, other lenders including notable names in the space were blatantly providing lending facilities with nearly zero collateral.
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