Celsius is a blockchain-integrated fintech platform that aims to erode the primacy of central banking institutions and provide primacy to its users and the ongoing health of the platform through its savings and loans protocol. Its pitch to users is to “Unbank Yourself.” Accessible entirely from a mobile phone, it’s targeted at retail consumers who want a better rate than what their bank gives, and to crypto-enthusiasts who want to borrow money at low interest rates.
Better Rates of Interest
With the record low interest rates currently set by central banks around the world, the banking sector is struggling to offer any real value to its retail customers. Interest rates in fiat money are below the rate of inflation, and it looks set to stay that way for many years to come. Crypto and DeFi offer savers the chance to break this paradigm, and Celsius is another project that wants to offer great value to those who have crypto held similar to a bank account, and help users who lend their money.
Celsius follows a “community-first mandate”. In practice, this means Celsius returns 80% of all its earnings to users who stake within their platform. There are 35 different tokens available for staking in the network, including blue-chip cryptos like BTC and ETH, and known stablecoins like USDT and DAI. The rate of interest shifts, like many other protocols, in line with market supply and demand. Crucially, Celsius doesn’t demand a minimum deposit to start earning interest on your holdings, so even the most modest user can earn interest.
Celsius Payout Options
Celsius, unlike many other protocols, does pay out in the same currency as the staked cryptocurrency, so a BTC deposit will yield BTC. However, should a user staking within the program choose to receive their payout in CEL – the team’s native governance token – payouts are naturally higher. This is to encourage uptake of their own token – which has benefits we’ll touch on later.
It’s also targeting institutional investors with its offering, pitching for them to borrow their crypto from Celsius– citing it as a “proven source.” It uses “rehypothecation”, which means that it takes the crypto from its retail users to be posted as collateral, and allows hedge funds to borrow it or buy it so they can gain exposure to the crypto market. As these investors can afford to pay high short-term interest rates, this money is then percolated back down into the community.
Celsius Savings and Loans
Celsius can also loan USD in the form of crypto-collateralized loans. As Celsius is happy to pay out, users can temporarily maintain liquidity in USD while keeping themselves exposed to their crypto-assets, so that the gains of any sudden bull run are not foregone. As usual, crypto-collateralizations are steep, and the max you can borrow is 50% of a crypto’s value as USD, in order to insulate the protocol against market shocks.
The CEL token carries many of the hallmarks of similar ERC-20 tokens built on the Ethereum network that provide savings and loans. Somewhat uniquely, the choice to be paid out in CEL is rewarded handsomely with a 30% tip on the pay out, and a similar discount is applied to users using CEL tokens to pay interest on their loans. This encourages onboarding, particularly from institutional investors, who can ramp the product with their firepower. Holding CEL lets users unlock new tiers in the protocol’s reward program, where they can earn varying degrees of compound interest as a result.
The CelPay Network
The final utility of CEL is the inception of CelPay. With the feature, you can send a link to anyone which will create a CelPay wallet for them when they click it. All CelPay payments are feeless, and if you’re comfortable using a custodial product, it’s an excellent way to transfer money to another person.
Celsius has built a quality product and has shown incredible growth to date with people looking for an easy to use CeFi savings product.
Is CEL Hard to Get?
If you are new to the world of digital assets then getting cryptocurrencies can be a confusing prospect. It may be a bit simpler with the top two Bitcoin or Ethereum, but what about that lesser known Ethereum token, such as CEL, that you have heard so much about?
Numio is a great choice for CEL. With Numio you can send and receive your stored CEL instantly and at the touch of a button. If you want to try something a bit more advanced you can use Numio to trade and swap CEL.
Download Numio to get Celsius Network
How can I get CEL?
Getting CEL is easy on Numio. You can use your credit or debit card to purchase ETH or USDC, which can then be exchanged for CEL*, you can swap or trade it for other ERC-20 tokens (up to 100x cheaper than other wallets), and you can send or receive it as payment. Whatever way you choose you can be sure that you are always in full control of your CEL.