Celsius crypto Lending Service withdrew $500 million from Anchor ProtocolThe Celsius crypto lending service withdrew $500 million from Anchor Protocol due to UST instability.
At least 261,000 ETH ($535 million) was sent to Anchor Protocol from Celsius wallets within five months.
Celsius allows retail investors to earn up to 17% per annum on cryptocurrency deposits.
In turn, Anchor offers a yield of up to 20% on deposits in UST.
According to The Block, on May 11, Celsius withdrew about 225,000 ETH, and later managed to take the remaining 36,000 ETH.
"Everything was relatively normal for Celsius, because they used Bonded ETH (bETH) as collateral to borrow UST, which they then transferred to Anchor to generate income. In the current situation, it turned out to be safer than buying UST from the market," said Igor Igamberdiev, an analyst at The Block.
The analyst also reported that the withdrawn ETH was subsequently sent to the Aave v2 lending protocol.
