What is Celsius? (CEL)
The Beginner’s Guide
Celsius network is a regulated, SEC compliant, lending platform that enables users to receive interest on deposited cryptocurrencies or take out crypto collateralized loans.
Celsius hopes to attract users by returning high yields on their deposits while maintaining the benefits apparent in traditional outlets such as quick, fee-less transactions. For existing crypto investors wishing to take out a loan, Celsius provides an opportunity to receive dollars without cashing out of cryptocurrency holdings.
The system is based around their native token CEL, which is used to take loans, provide rewards, and make payments.
Further, Celsius implements a loyalty program where status is reflective of CELs value in the user’s portfolio. As a member progresses to each subsequent tier, they are given bonus rewards and discounts on loan interest.
For more regular updates from the Celsius Network team, you can bookmark the Celsius Network Blog, which includes weekly updates, new offerings, and explanatory articles.
Sino Gumawa ng Celsius?
Binuo sa London noong 2017, ang Celsius Network ay itinatag nina Alex Mashinsky, S. Daniel Leon, at Nuke Goldstein. Kilala si Mashinsky bilang isang magaling na negosyante at inhinyero na dating nag-aambag sa mga pundasyon ng VOIP (Voice Over Internet Protocol) at sa pagtatatag ng dalawa sa mga nangungunang 10 venture-backed exit ng NYC mula pa noong 2000.
Noong 2018, naglunsad ang Celsius ng isang Initial Coin Offering (ICO), na gumawa ng halos $ 50 milyon sa pamamagitan ng pagbebenta ng 325 milyong CEL (halos kalahati ng kanilang kabuuang supply)
Habang ginagabayan ng Celsius Foundation ang proyekto na naglalaan ng kanilang mga pondo, ang mga address ng mga kilalang may-ari ng CEL ay magagamit ng publiko sa kanilang website.
Paano gumagana Celsius Work?
The Celsius Network is composed of hosted accounts on Celsius and a variety of crypto exchanges intending to minimize the transfer of crypto-assets outside its system.
Ultimately, there are four key players within Celsius system:
- Lenders – Depositors who earn interest on their accounts holdings
- Borrowers – Margin traders who wish to take leveraged short or long positions
- Celsius Platform – Facilitates trades, manages risk, and determines trading fees
- External exchange markets – Executes trades and borrows/provides liquidity
To earn extra income using the Celsius network, participants deposit crypto assets on the platform and earn rewards on a number of cryptocurrencies, such as Bitcoin, Ethereum or USDC.
Celsius manages deposited funds in a ‘Lending Stake Pool,’ subsequently lent to external exchanges, and the interest received is distributed among the users.
To determine the distribution paid to lenders, Celsius uses a modified Proof-of-Stake (PoS) formula where the interest paid to lenders is a function of the funds deposited and the amount of days participating in Celsius’ consensus mechanism.
There are a few types of users who may wish to borrow through the Celsius platform.
- General Users – Users who deposit crypto on the Celsius Network and using the funds as collateral to receive a loan.
- Traders – Accredited investors (or SEC registered funds) who borrow capital from Celsius lending pools to trade. These accounts require a minimum balance of $10k to cover potential losses and fees that occur in certain trading activities.
- Exchanges – Institutions who borrow from Celsius lending pools should they need the added liquidity to settle trades.
Bakit may value ang CEL?
Ang cryptocurrency ng Celsius Network na CEL ay nag-papahintulot sa mga gumagamit nito na kumuha ng mga pautang, gumawa ng mga pagbabayad at tumanggap ng dagdag na mga loyalty benefit.
Subalit, ang CEL sa karamihan ay ginagamit bilang reward mechanism para sa mga gumagamit sa pag-access sa Celcius Network at bilang collateral currency upang tumanggap ng mga pautang.
Ang mga humahawak ng CEL ay kumita ng karagdagang mga benepisyo sa pag-gamit ng cryptocurrency upang magawang mas mura ang bayad sa mga utang o tumanggap ng mas mataas na kita sa halip na pumili ng ibang mga cryptocurrency.
Bilang isang token na binuo sa Etheruem blockchain, ang CEL ay maililipat para sa ibang token tulad ng ETH at DAI. Ang CEL ay maaari ring mailipat sa ibang mga gumagamit sa loob ng Celsius network ng walang fee sa transaksyon sa pamamagitan ng payment service nito na CelPay.
Mga Crypto Guide ng Kraken
- What is Bitcoin? (BTC)
- What is Ethereum? (ETH)
- What is Ripple? (XRP)
- What is Bitcoin Cash? (BCH)
- What is Litecoin? (LTC)
- What is Chainlink? (LINK)
- What is EOSIO? (EOS)
- What is Stellar? (XLM)
- What is Cardano? (ADA)
- What is Monero? (XMR)
- What is Tron? (TRX)
- What is Dash? (DASH)
- What is Ethereum Classic? (ETC)
- What is Zcash? (ZEC)
- What is Basic Attention Token? (BAT)
- What is Algorand? (ALGO)
- What is Icon? (ICX)
- What is Waves? (WAVES)
- What is OmiseGo? (OMG)
- What is Gnosis? (GNO)
- What is Melon? (MLN)
- What is Nano? (NANO)
- What is Dogecoin? (DOGE)
- What is Tether? (USDT)
- What is Dai? (DAI)
- What is Siacoin? (SC)
- What is Lisk? (LSK)
- What is Tezos? (XTZ)
- What is Cosmos? (ATOM)
- What is Augur? (REP)
Why use CEL?
Users may find Celsius Network appealing if they wish to earn yield in the form of cryptocurrencies or if they wish to take trading positions with more than their account balance.
Investors may also seek to add CEL to their portfolios should they believe in the future of cryptocurrency lending platforms.