Celsius users can use the digital assets they have on deposit as collateral for loans, which can be opened for as little as 3.465% APR if you’re a platinum member and make your interest payments in CEL tokens, otherwise it’s 4.95%. You can pay interest in BTC, ETH, USD, Stablecoins or CEL. If you pay your interest in CEL, you will get a discount depending on your Loyalty Level.
Celsius is currently paying interest on 25 different coins and tokens, with base rates that range from 1.36% to 12% APY. You can earn your interest in the coin you deposited or in CEL. Users who choose to earn their weekly interest in CEL tokens will receive up to 35% more interest on all non-CEL deposits.
|Earn In-Kind||Earn In-CEL||Earn In-Kind||Earn In-CEL|
*Rates as of this minute, changing weekly
Celsius is distributing 80% of their revenues to the Community, they earn the coins they pay as interest in two main ways, lending and staking.
Interest through staking
The first way is very simple, you deposit the coins and Celsius stakes them for you, without any minimum deposit amounts or lockup terms. Dash, with one of the most successful masternode implementations, is a great example.
Running your own Dash masternode:
- Minimum of 10000 Dash
- Access to a computer running 24/7
- Variable ROI, currently 6.22%
- Not insured, self custody
Staking Dash with Celsius:
- No minimum
- Just deposit into the App
- Variable ROI, currently 6%
- Fully insured by BitGo's cold storage insurance policy
Interest through lending
Unfortunately, not every coin can simply be staked in cold storage to earn interest, there is a lot of really hard work that goes into earning interest on all the other supported assets. Celsius runs a large scale lending business to collect interest from hedge funds, exchanges and institutional traders. They have already done over $2.2B worth of coin loans originations with these partners, generating over $4 Million worth of interest for their community.
Celsius uses BitGo for custody, they are one of the best, if not the best custodian in the cryptocurrency space and they are used by many large companies like Ripple, SBI Holdings, UPbit, Genesis, Pantera Capital, Bitstamp and CME Group. BitGo is insured by Lloyds, this is their insurance policy:
This means that coins that are almost never moved, like staking coins, can be placed into fully insured BitGo cold storage wallets.
Celsius wallet app
Your new favourite app! Securely hold your digital assets, track your wallet value over time, earn interest, get a loan, send fee-free payments, make fast, free and secure withdrawals, see community statistics and show a damn good looking wallet to your friends like the showoff you are. Just kidding, but who doesn’t like bragging about earning 5 times more interest than the best savings account in the US offers? We do.
Send crypto to anyone fee-free and instantly, with a simple link. No need for wallet addresses, double checking or waiting for your transaction to confirm. Send a link to anyone, if they open the link on their phone it will launch the Celsius app and the payment will be added to their balance.
Celsius enables you to withdraw coins at any time, fee-free. Withdrawals <$20k are processed immediately, whereas amounts >$20k might be delayed for up to 24 hours due to multi step security protocols.
Celsius community page
Transparency is key when we are talking about financial services and Celsius stands out against their competitors providing as much Transparency as possible. Starting back in May 2019 the Celsius App started to display data about the growing number of users, deposited assets, distributed interest and more. It's worth to take a look into it. And as well take a look into our visualization and interpretation of the data.