Celsius Network, the company behind the Celsius app, currently supports 12 stablecoins. All of the stablecoins will be eligible for up to 15.89% APY that will be distributed weekly. Unlike traditional institutions, Celsius is creating an environment where investors can earn significant yield, despite a low interest rate environment.
The Celsius Network is the biggest crypto rewards platform. On August 26, 2020, they announced that they had increased the reward rate from 11.55% to 15.89% APY. Users of the Celsius app can earn up to 35% more on their stablecoins if they opt to receive rewards in the native CEL token. They will also see the boost if they opt to receive rewards in-kind at the rate listed on the app.
About the Celsius Platform
The Celsius platform supports 12 stablecoins that are pegged to various global fiat currencies. With the stablecoins, users can earn double-digit yields via the platform. The platform currently offers the highest rates on stablecoin holdings because of growing demand for these digital assets.
It generates revenue via institutional and retail lending and around 80% of its revenue goes back to the community members that hold their crypto on the platform. The Celcius app also supports purchases of USDC and other digital assets using SEPA and ACH. They can then begin earning on their stablecoins immediately with payouts being made every week. The app currently offers the lowest rates for ACH purchases at just 0.1%.
Besides holding crypto on Celsius to earn rewards, users can also borrow fiat currencies using the stablecoin holdings as well as 20 other digital coins such as ETH and BTC. The rate for borrowing on Celsius can be as low as 1% APR.
According to Alex Mashinsky, the Celsius Network CEO, stablecoins are a bridge between the crypto and fiat world for most of their customers. When users opt to convert their fiat dollars into stablecoins, they can earn over 100 times what they would get through legacy financial institutions.
What is The Celsius Network?
The Celsius Network was created to deal with the financial needs of consumers across the world. They do so by offering rewards for holding crypto on the platform. Besides that, they offer low-cost loans that are easily accessible via the mobile app.
The Celsius Platform was built on the belief that the financial sector should be designed with the best interests of depositors in mind. Celsius operates as a blockchain-based platform where members can access curated financial services, which are hard to access or unavailable in the legacy financial system.
The Rise of Crypto Lending Platforms
The crypto lending industry has been growing steadily in the recent past. Platforms such as Nexo have become popular with borrowers. A major reason for this is that these platforms allow users to access quick loans without having to lose their crypto holdings. Once users pay back the loan, they receive their crypto holdings back.
Another reason why they are so popular is that they eliminate the complexity of getting access to loans. In the traditional banking sector, accessing a loan requires one to sign numerous documents and pay huge processing fees. The crypto lending sector is still young but it is showing a lot of promise.
Image Source: Celsius Network Twitter