A surface look at Celcius.network
In the current crypto landscape of DEX’s , lending-borrowing netorks and DeFi overall it seems like there’s a promising project coming up every single day. You might’ve heard of one called “Celcius”. What is Celcius? Why is Celcius a thing?
Today we’re going to take a surface look at what Celcius is and why it exists.
What is Celcius?
Celcius is in essence like a bank, for crypto.
- Users deposit their cryptocurrency and Celcus lends this out, in return it gives the depositors a dividend.
- Users can also loan fiat or coins on Celcius by depositing their crypto as collateral.
- Cellpay is Celcius’ payment system; a peer-to-peer payment system to send crypto from the Celcius app
The Celcius rates are looking very appealing with a 16.54% APY on USDT at the time of writing this.
However, this is nothing new.
We’ve seen many, different type of DeFi lending, staking and payment networks.
Celcius has quite some competition, competing against big names like BlockFi, Compound.finance, Aave and MAKER.
So all in all, Celcius really isn’t bringing anything new to the table here. Also be wary when using these types of networks/platforms, never deposit more than you are okay to lose.
Why is Celcius?
Why is Celcius a thing?
Just like with all the other networks and platforms; to earn money.
Celcius takes a cut as the mediator when you lend your money and earn interest on it. Celcius can be used to make some money by depositing for example a stablecoin (like USDT) and getting a return which will hedge against inflation.
This is basically just another (pretty generic) platform.
Final thoughts
I have never used Celcius personally, but I have used other crypto lending platforms to accrue interest.
With a steadily growing coin price (currently: $5.95), I think Celcius has a decent growth trajectory. I think it’ll eventually go to a stable price as it grows and as the DeFi space grows. Celcius is still definitely an early adopter and has the advantage of not being decentralized and confusing for new investors.
