Celcius (CEL) Network: What is it?

Celsius (CEL) Network is a financial technology (fintech) platform that offers digital and fiat lending, savings, and payment accounts. In addition to challenging conventional bank models, Celsius’  economic model prioritizes the community’s needs.

Celsius wants to attract users by offering them high yields on their deposits while retaining the benefits associated with traditional outlets, including free, fast transactions. If you have a cryptocurrency and wish to take out a loan, Celsius provides an option that does not require you to liquidate your holdings. 

The system is built around the CEL token, which is used for payments, rewards, and loans. 

Moreover, Celsius has a loyalty program in which users are awarded points based on their CEL portfolio value. The more tiers a member reaches, the more rewards and discounts they are given on interest for loans.

Celsius (CEL): Who created it?

Since its incorporation in 2017, CEL Network has been under the leadership of Alex Mashinsky, S. Nuke Goldstein, and Daniel Leon. He has founded two of NYC’s top 10 venture-backed exits since 2000, including VOIP (Voice Over Internet Protocol), which was developed by Mashinsky.

CEL, the currency that Celsius created, held its Initial Coin Offering (ICO) in 2018, selling 325 million tokens (roughly half of total supply) to raise about $50 million.

CEL holders’ addresses are publically available on their website while the Celsius (CEL) Foundation controls where their funds are allocated.

Earning Interest by Staking

CEL offers cryptocurrency holders the chance to borrow cryptocurrency at interest at a time and earn interest in return. In addition to BTC, LTC, ETH, and stablecoins such as USDT, GUSD, and DAI, the platform accept over 35 tokens. Staked cryptocurrencies’ Annual Percentage Yields (APR) reflect their market demand. Several of these tokens generate earnings of 15% annually as of October 2020, dwarfing bank yields – often less than 1%. By choosing to receive interest earnings in the platform’s native token CEL, users will receive 30% higher payouts.

A minimum deposit is not required to earn interest with Celsius compared to fiat-denominated institutions. The withdrawal of funds or failure to meet a minimum aren’t subject to a lockup or penalty. Celsius Network offers a significantly different way to manage and hold assets, with fewer restrictions and higher returns. 

Borrow Cash by Crypto-Collateralized Loans

You can borrow USD using Celsius Network’s lending platform. Crypto-collateralized loans offer several benefits. Additionally, you can access fiat liquidity while maintaining your crypto assets. A sell-out of crypto in exchange for cash could result in tax implications and loss of market appreciation if you are taxed on capital gains. This is avoided with CEL. To guard against market volatility-related losses, Merlin Network loans are always over-collateralized. As a result, the loan amount can only be as great as 25%, 33%, or 50% of the value of the collateral.

Cryptocurrency price fluctuation is tempered by the remaining untapped collateral. Through the CEL app, you can choose the collateral and loan term you prefer, as well as the USD loan amount that you would like to borrow. The process of a Celsius loan is much faster than that of conventional loans, which can take days or weeks. As collateralized loans are not subject to credit checks or alternative verification procedures, credit checks are not necessary.

Celsius (CEL): How does it work?

A variety of cryptocurrency exchanges and hosted accounts are part of the Celsius Network, which minimizes the transfer of crypto-assets outside its system.

The Celsius system consists of four main players:

• Lenders – Earning interest on accounts held by depositors
• Borrowers –Short and long leveraged trades are available to margin traders
• Celsius Platform – Trades are executed, the risk is managed, and trading fees are determined
• External exchange markets – Borrows and executes trades

How does Celsius earn value?

Users of CEL, the cryptocurrency of its Network, can take out loans, make payments, and reap loyalty benefits.

CEL Network users are rewarded for accessing its Network and used as collateral for receiving loans. 

As opposed to using other cryptocurrencies, CEL holders benefit from making cheaper loan payments or receiving higher yields. 

Besides being transferrable for other tokens like ETH and DAI, CEL is also built on the Ethereum blockchain. CEL payment service CelPay allows users to transfer CEL to another user without incurring transaction fees.