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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.

what is celsius cel


Who Created Celsius?

Celsius Network于2017年在伦敦注册成立,由 Alex Mashinsky, S. Daniel Leon和Nuke Goldstein共同创立。值得注意的是, Mashinsky是一位成功的企业家和工程师,曾为VOIP 基金(网际网络语音协议)作出贡献,并自2000年以来成立了纽约十大风险投资公司中的兩家。

在2018年, Celsius推出了首次代币发行(ICO),通过出售3.52亿个CEL (约占其总供应量的一半) 筹集了5000万美元的资金。

虽然Celsius基金会指导项目和分配项目的资金,但CEL持有人的公司地址资料在其网站上是公开透明的

How Does 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

Earning

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. 

Borrowing

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.
     


为什么CEL具有价值?

Celsius Network的加密货币CEL,允许用户进行贷款、付款,以及获得额外的忠诚度福利。

然而,CEL主要是作为用户访问Celsius网络的奖励机制,和作为接受贷款的抵押货币。 

CEL的持有者可通过使用其加密货币来支付更便宜的贷款或获得更高的收益,并且在不选择其他加密货币的情况下可获得额外的福利。 

作为建立在以太坊区块链上的代币, CEL也可以转移给其他此类代币,例如 ETHDAI。此外,用户在无需支付交易费用的情况下,可以通过其支付服务CelPay转移CEL给Celsius网络内的其他用户。

开始购买加密货币


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