diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3e29880fa2..5c9731b663 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -63,6 +63,10 @@ Ref: https://keepachangelog.com/en/1.0.0/
 - [2076](https://github.com/umee-network/umee/pull/2076) Cosmwasm: registering `cosmwasm_1_2` capability.
 - [2083](https://github.com/umee-network/umee/pull/2083) Update `wasmvm` to 1.2.4.
 
+### Fixes
+
+- [2089](https://github.com/umee-network/umee/pull/2089) MsgSupplyCollateral no longer fails when market is below MinCollateralLiquidity.
+
 ## [v5.0.0-rc1](https://github.com/umee-network/umee/releases/tag/v5.0.0-rc1) - 2023-05-31
 
 ### Features
diff --git a/x/leverage/keeper/msg_server.go b/x/leverage/keeper/msg_server.go
index 99127443d9..a898a9cac4 100644
--- a/x/leverage/keeper/msg_server.go
+++ b/x/leverage/keeper/msg_server.go
@@ -241,11 +241,6 @@ func (s msgServer) SupplyCollateral(
 		return nil, err
 	}
 
-	// Fail here if collateral liquidity restrictions are violated
-	if err := s.keeper.checkCollateralLiquidity(ctx, msg.Asset.Denom); err != nil {
-		return nil, err
-	}
-
 	// Fail here if collateral share restrictions are violated,
 	// based on only collateral with known oracle prices
 	if err := s.keeper.checkCollateralShare(ctx, uToken.Denom); err != nil {