Celsius Passes Major Milestone – Pays Out $250 Million+ Interest to Users

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In Brief
  • Celsius has paid out $250 million in interest to users.

  • The unicorn has over 400,000 users.

  • The Celsius (CEL) token is popular and has grown substantially.

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On Feb 15, Celsius confirmed that it had paid out over $250 million in savings-based crypto yields to its followers.

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The opportunities that Decentralized Finance (DeFi) provides to everyday users are notable. This has most recently been exemplified by the Celsius Network. Serial entrepreneur Alex Mashinsky created the hybrid (Centralized Finance) CeFi/DeFi lending platform.

This staggering number points to the massive potential that DeFi applications can enable, which is still only the beginning.

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Making Banks Obsolete 

Celsius has only been around for a few years but is already making itself widely known in the lending and borrowing industry. Since its inception, Celsius has become a unicorn, attracting over 400,000 users to its platform.

It has paid out hundreds of millions of dollars to its users. The premise behind Celsius is simple and is only realizable through blockchain technology implementation.

For all intents and purposes, Celsius is essentially a digital asset bank. It allows users to sign up, deposit a variety of cryptocurrencies, and gain interest on those deposits. This differs highly in how it rewards its customers.

Celsius profits in the same way as regular banks, lending out deposits to borrowers in return for interest, but the reward distribution mechanism is different. Instead of rewarding executives or company shareholders, a large portion of the profits goes directly to users. 

Users can receive yield in the native asset they deposit or in Celsius’s CEL token, granting a higher percentage return. Anyone can also utilize CEL to reduce interest costs for borrowing, providing multiple value-added use cases to the currency.

By using cryptocurrencies, Celsius offers savings rates unheard of in the traditional banking world, with many of the percentages typically outpacing stock market growth. This is quite an accomplishment for a lending platform.

Continuing to Grow

Celsius accepts over forty different cryptocurrencies and is always in the process of adding more, pushing the cutting edge of the semi-centralized lending space.

Using cryptocurrencies and stablecoins, users can achieve up to 18.5% annual percentage yield (APY) when depositing specific cryptocurrencies, allowing for proper wealth preservation to take place. If you opt to receive your profits in CEL, the APY can jump to 25%, an astronomical passive return for depositing assets.

Celsius has established itself within the space but faces increasing competition from fully decentralized platforms like AAVE and Compound. With many organizations generating billions in loans, this competitive space has a lot of room to grow, particularly with the high and stable returns.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

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