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Celsius (CEL) provides P2P lending services to DeFi users across the world. The network combines a new cryptocurrency with DeFi lending pools to enable users to access funding and earn lending out their crypto. Notably, the DeFi lending sector is one of the fastest-growing blockchain industries currently.
Celsius is one of the top-performing P2P protocols in the market. The network has over 1 million registered users and has lent out $25.2 billion in assets. Additionally, the network has paid out over $929 million in yield rewards since its launch.
What Problems Does Celsius (CEL) Attempt to Fix?
Celsius helps to reduce inaccessibility in the market. The platform eliminates banks from the lending equation. This strategy eliminates the gatekeepers. Users can access funds regardless of their credit history. This ability led the developers to coin the phrase “unbank yourself.”
Celsius users don’t have to provide a treasure trove of documentation regarding their financial history. Celsius doesn’t need to see your account balances, income statements, and taxes. Instead, the network leverages smart contracts and blockchain transparency to create a more streamlined way for users to benefit from both sides of the lending process.
Celsius helps to reduce borrowers’ struggles through a low fee structure. Centralized lenders have abused borrowers for too long. Banks, credit unions, and lending platforms continue to raise their rates and loan requirements. The prerequisites have left many people unable to access vital funding.
The Celsius network takes the unique approach of eliminating fees from the lending scenario. Unlike the competition, there are no origination, borrower, late, and transfer fees. Borrowers enjoy access to funds at the lowest industry rate of 1% APR. This low APR combined with the open nature of the platform enables Celsius to provide opportunities on a global scale.
Benefits of Celsius (CEL)
There are some key benefits that Celsius introduces to the DeFi lending market. For one, the network is very flexible in terms of collateral options. Users can choose between +40 options to secure a loan. Celsius enables you to use your cryptocurrency to secure funding instead of selling it. Once you repay your loan, your collateral is returned.
Lenders have a lot to gain when they join Celsius. The platform pays out rewards as high as a 17% yield. These rewards are calculated by the system based on your loan terms and paid out every Monday. The elimination of human interaction within the process ensures that these rewards always arrive on time.
Another key benefit of Celsius is its high transparency. The developers are very open regarding the network’s status. They have both social media channels and direct contact information. Additionally, they publish information on the blockchain regularly. Also, the platform leverages Chainalysis for third-party verifications.
Celsius borrowers have a variety of ways to repay their loans. You can pay your loans using fiat currency or stablecoins. This added flexibility can save borrowers time and effort when it comes time to fulfill their loan commitment.
How Does Celsius (CEL) Work
Celsius started as an Ethereum based platform but has recently added Cardano to its network. The protocol enables anyone to lend and borrow funds in the form of stablecoins via their website and mobile app. This process is simple and only takes a few minutes to complete.
You will need to verify your ID to use Celsius’s lending services. The platform requires you to complete a KYC (Know Your Customer Compliance) process similar to many CEX (centralized exchanges). This process requires you to upload documents and take a photo. It can take a day or two for your approval. Once approved, you will receive an email telling you to log in.
Potential lenders and borrowers can see exactly how much they will make/pay over different time periods using the calculator feature. You can set the amount, currency, interest, and more. The calculator helps users to determine what the best option is moving forward.
Celsius has a credit card in the works. According to company documentation, users will earn rewards every time they spend using the card. They also earn weekly rewards on their crypto collateral using this system. At this time, the platform has a waitlist for this feature which is slated for release in Q4 2021.
Celsius has numerous products geared towards enterprise clientele. The network offers access to a variety of customizable services including a fully decentralized infrastructure and smart contract developer tools. Additionally, Celsius corporate users enjoy responsive support from developers.
High Net Individuals
Celsius provides a suite of crypto services that cater to high-net-worth individuals as well. These services include competitive rates, access to trading desks, and a variety of top-performing cryptocurrencies. The network provides these users with added support to ensure they make an informed investment decision.
The CEL token is the main utility token for the platform. Users can interact with the features of the network using this token. Notably, CEL is an ERC-20 compliant coin that shares interoperability within the Ethereum network. There are some benefits gained when you use CEL. Specifically, you gain priority in line for loans, lower loan rates, higher earning rates, better coin loan rates, and access to the platform’s premium support.
History of Celsius (CEL)
Celsius entered the market officially in June 2018. The platform saw immediate investor support. This success helped the protocol to expand its operations. Notably, the platform recently held another funding round in which it secured $400 million.
How to Buy Celsius (CEL)
Celsius (CEL) is currently available for purchase on the following exchanges.
Bitstamp – Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world. They currently accept Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.
Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK. Canada & USA Residents are prohibited.
Celsius (CEL) – The Future of Lending Today
Celsius provides a valuable service to the market. The platform opens up access to liquidity for a global audience of disenfranchised borrowers. It also enables lenders to secure passive rewards without the need to sell their digital assets. These features will continue to make Celsius a popular option for users now and in the future.
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