What Is Celsius?
Celsius Network is a centralized finance or CeFi platform that provides cryptocurrency users with banking and other financial services. The platform allows users to take out over-collateralized loans at low interest rates, earn high interest on deposited assets, and provide a fiat on-ramp/off-ramp and a digital wallet for payments.
Background
Alex Mashinsky, Daniel Leon, and Nuke Goldstein founded Celsius in 2017. Celsius’s business model is predicated on attracting retail deposits by providing high interest rates and lending these deposits to institutional clients; in 2022, Celsius filed for bankruptcy.
How It Works
Celsius Network allows users to access banking and financial services for their cryptocurrency assets. Users can earn interest on deposits, take out loans, and enjoy additional benefits by holding the CEL token. The platform generates revenue by lending the deposited funds to institutional clients.
The CEL token is used to boost yield, get a discount on interest payments, and qualify for various Celsius Loyalty Tiers (depending on how much CEL is held) to enjoy additional benefits. The platform claims to use 80% of its generated revenue to facilitate the provision of high-interest rates and low borrowing costs to its users.
Key Takeaways
- Celsius Network is a CeFi platform offering cryptocurrency users banking and financial services.
- Users can earn interest on deposits, take out loans, and enjoy additional benefits by holding the CEL token.
- The platform generates revenue by lending deposited funds to institutional clients.
- 80% of the platform’s revenue is used to provide users high-interest rates and low borrowing costs.
- The CEL token is used to boost yield, get interest payment discounts, and qualify for Celsius Loyalty Tiers.
