Thread by @jcc_ag

@CelsiusNetwork - Risk Assessment

- Minimal exp to #UST (Pulled out of #Anchorprotocol early following risk mitigation process)
- No directional exp to #luna
- No forced selling of stETH at discount (withdrawals paused & @Mashinsky stated 'plenty of ETH').

#CelShortSqueeze
1/

ON stETH:
- Current Discount is 5.4% (and closing) on ~$400M-$500M = ~$25M
- Discount represents ~0.25% of $10B in AUM.
- Discount likely has a floor (arbitrageurs/speculators will intervene as PoS date approaches).
- Plenty of FUD online around this low risk exposure.

2/

- Over-collaterized retail lending (no risk)
- Nearly 100% collaterized institutional lending (including potential loans to #3AC directly or indirectly)
- On-chain borrowing is known & public. Liquidation levels have been lowered/loans repaid (situation stabilized)

3/

IMPORTANT: Two types of loans.

- Institutions borrow stable coins w/ collaterized #Fiat (no risk)
- Institutions borrow crypto w/ collaterized stablecoins or #fiat. Note: As #crypto prices go ⬇️, the collateral covers a higher % of the loan (less risk)

4/

UNKOWN:
- #CelsiusNetwork lends AND borrows stablecoins depending on cost of capital.
- Tether liquidated a #CelsiusNetwork #USDT loan. No details available. Note: Tether is a shareholder so closure likely coordinated.

5/

OTHER:
- Closed a $750M equity round only 7 months ago!
- Largest #BTC miner in NA. Less AUM means more #BTC to cover fixed expenses.
- Owns @GK8_Security, a world leading custody provider tailored to institutions.

6/

CONCLUSION:
- #Celsius has a ST liquidity imbalance. Some coins take a big longer to get back.
- Withdrawal pause is part of Risk Mitigation.
- Collaterized borrow/lending is safest way to earn yield.
- Not FA, IMO they are in better shape than mkt thinks

Retweet 2fight FUD

7/

@CaitlinLong_ @AriDavidPaul @otisa502 @Mashinsky @sdanielleon @NukeGold @TheRealPlanC