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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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49691290 No.49691290 [Reply] [Original]

here's your financial advice bro

>> No.49691636
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49691636

What's the tl;dr on the Celsius collapse? I can't be bothered to dyor.

>> No.49691668

>>49691290
we can literally see them frantically adding more collateral so they don't get liquidated
it's all on-chain retard

>> No.49691811

>>49691636
There was a token created called stETH, which stands for staked ETH. When you stake your ETH, you get stETH as collateral. It's supposed to be backed 1:1 with ETH. But, they used the ETH that was supposed to be backing it to fund protocols and for loans that turned out to be bad. They had to liquidate large amounts of their ETH and BTC to pay back the bad loans. They currently do not have enough to cover what users have deposited, so they can't let you withdraw because the funds are not there.
That's one part of it. I'm sure there's more to it as well.

>> No.49692310
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49692310

>>49691636
this >>49691811 and tldr they used user funds to go long
now they're extremely close to liquidation, so they do not let users get out of the platform
they are basically another 10%-20% dump away from completely losing everything, but even if it doesn't happen it's extremely debatable if they'll survive this (since they are already more or less bankrupt)