Celsius (CEL) - a one-stop banking and financial services platform for cryptocurrency users. It offers rewards for depositing cryptocurrencies and also provides services such as loans and payments through wallets. Platform users receive regular payments and interest on their assets.
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What is the essence of Celsius (CEL)?
Cеlsius network — a blockchain-integrated fintech platform, accessible to anyone with a smartphone. With its suite of lending, savings and payments solutions, the Celsius Network provides access to financial services and conditions, not available in conventional institutions. In essence, the main purpose of the project can be described as follows: providing financial services through what is best for the community, not intermediaries.
The Celsius Network approach - a community priority - reverses the traditional approach to financial services and allows for a radical alternative. The project returns 80% of all its income to users in the form of rewards and attractive interest rates on savings. Initially, the company was created thanks to the idea of Alex Mashinskiy and Daniel Leon in 2017.
Mashinsky has long experience in the development of the Internet. He worked on the creation of the Voice over Internet Protocol (VOIP) in the 1990s and later on some other Internet technologies. Co-Founder and Chief Operating Officer (COO) Daniel Leon has experience building startups from the seed stage. His previous positions include CEO of Atlis Labs, a social recommendation and research app that leverages real-time user data. The project has a large team of core employees, technical developers and advisors with experience in various fields.
Key features
The main function of the project lies in the over-collateralization of cryptocurrency loans and re-mortgage lending. This is the process by which cryptocurrency funds, held as collateral on the Celsius network, are loaned to another party – in this case, large investors, looking for a safe investment in cryptocurrencies.
| Loan | Instead of borrowing cryptocurrencies from disparate sources, investors like hedge funds can borrow cryptocurrencies from a trusted source, the Celsius network. |
| Investors | The platform represents an attractive opportunity for large institutional investors. It is suitable for those who are looking for a safe entry into the cryptocurrency market by combining cryptocurrencies into one large pool. |
| Percent | The percentage that Celsius receives from these investors comes back to the community. 80% of profits go to Celsius Network users, while 20% help to fund development on the platform. |
| Deposit | Unlike traditional banks, Celsius does not require a minimum deposit to start earning interest. With fewer restrictions and higher returns, the Celsius Network offers a radically different value proposition in terms of savings. |
Celsius Network loans are always over-collateralized to protect against losses that may arise due to market volatility. Thus, you can only get a loan of 25%, 33% or 50% of the value of the collateral. The remaining unused collateral acts as a buffer against cryptocurrency price fluctuations. To access Celsius Network loans, all you have to do - select the type and amount of collateral you want to deploy, the loan term and the desired USD loan amount through the Celsius app.
Project token and its purchase
Launched on the market in June 2018, the CEL cryptocurrency is an ERC-20 token. It is at the heart of the Celsius Network earnings and reward systems. Initially, only 50% of the tokens were issued, of which 25% went to the founding team, and the rest were locked in a smart contract. Using the CEL token gives each Celsius user group unique benefits:
- recipients: by accepting CEL token rewards, participants receive up to 30% more rewards for all other token deposits;
- borrowers: by paying interest in CEL tokens, borrowers receive a discount of up to 30% on interest payments;
- institutions: by paying interest in CEL tokens, institutions, borrowing tokens from Celsius, receive a 30% discount on their interest payments.
Reward percentages come from the Celsius Loyalty Program, which refers to each user's CEL assets. For example, the Bronze reward level requires 5-10% of your portfolio to be in CEL, Silver 10-15%, Gold 15-25% and Platinum 25-100%. The best cryptocurrency exchanges to trade Celsius shares are currently OKX, FTX, Bybit, Gate.io and HitBTC.