EXCLUSIVE: Celsius pulled half a billion dollars out of Anchor Protocol amid Terra chaos By RyanJamesWeeks
implemented and abides by robust risk management frameworks to ensure the safety and security of assets on our platform.“Celsius was relatively OK because they used Bonded ETH as collateral to borrow UST, which was then lent to Anchor for yield. In the current situation, this turned out to be safer than buying UST from the market,” said The Block Research’s Igor Igamberdiev. He stressed that his analysis represented a lower estimate of Celsius’s deposits to and withdrawals from Anchor Protocol.
The process of depositing funds to Anchor Protocol was convoluted. Igamberdiev explained that it involved first staking ETH using Lido to receive Staked ETH ; then sending stETH to Anchor vault on Ethereum in order to mint and send bETH to Wormhole, a crypto bridge; minting bETH on Terra using Wormhole; before finally depositing bETH to Anchor Protocol.
Igamberdiev added that the funds withdrawn from Anchor Protocol by Celsius in the form of Lido stETH were sent to Aave v2, another lending protocol. © 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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