{"id":13131,"date":"2021-05-06T18:13:32","date_gmt":"2021-05-06T12:43:32","guid":{"rendered":"https:\/\/zebpay.com\/?p=13131"},"modified":"2021-05-06T18:13:32","modified_gmt":"2021-05-06T12:43:32","slug":"looking-at-the-celsius-network","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network","title":{"rendered":"Looking at the Celsius Network"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network\/#Earn_interest_while_HODLing\" title=\"Earn interest while HODLing\">Earn interest while HODLing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network\/#Borrow_Stable_currency_against_your_crypto\" title=\"Borrow Stable currency against your crypto\">Borrow Stable currency against your crypto<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network\/#P2P_payments_with_zero_fees\" title=\"P2P payments with zero fees\">P2P payments with zero fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network\/#CEL_Token\" title=\"CEL Token\">CEL Token<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network\/#Features_of_the_CEL_token\" title=\"Features of the CEL token\">Features of the CEL token<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network\/#Holding_the_CEL_token\" title=\"Holding the CEL token?\">Holding the CEL token?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/in\/blog\/looking-at-the-celsius-network\/#Risks\" title=\"Risks\">Risks<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><strong>Don&#8217;t want to just leave your crypto laying idle as you HODL? Let&#8217;s explore how Celsius Network allows you to make an interest on your idle crypto and also allows you to borrow stable currencies by using your crypto as collateral.<\/strong><\/p>\n\n\n\n<p><em>This post has been written by our guest authors for the week. Chinmay Gargava, VP Product Delivery and Maria Shaikh, Data Scientist<\/em>.<\/p>\n\n\n\n<p>A quick disclaimer: This isn&#8217;t investment advice.<\/p>\n\n\n\n<p>With Fiat currencies and traditional banks, just putting your savings into a savings account will earn you a small interest on it annually. Makes sense. They are putting your money to work, and paying you a cut of the profits. You make money on your idle savings. The bank makes money by charging borrowers an interest on it. And borrowers have timely access to funds for a fee.<\/p>\n\n\n\n<p>But how does this translate to the world of <a href=\"https:\/\/zebpay.com\/in\/buy-cryptos\/\" target=\"_blank\" rel=\"noreferrer noopener\">crypto<\/a>.<\/p>\n\n\n\n<p>Enter crypto &#8220;banks&#8221; like <a href=\"http:\/\/celsius.network\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Celsius Network<\/a>, <a href=\"https:\/\/blockfi.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BlockFi<\/a>, <a href=\"https:\/\/nexo.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ne<\/a><a href=\"https:\/\/nexo.io\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">x<\/a><a href=\"https:\/\/nexo.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">o<\/a>, among others.<\/p>\n\n\n\n<p>In this blog we will look at Celsius Network, their product offering and the unique tokenomics that has driven their meteoric rise this past year.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-earn-interest-while-hodling\"><span class=\"ez-toc-section\" id=\"Earn_interest_while_HODLing\"><\/span>Earn interest while HODLing<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Celsius&#8217; Earn feature allows you to store your cryptos (40+ different cryptocurrencies accepted) with Celsius and get paid weekly with interest earned on your coins.<\/p>\n\n\n\n<p>Each currency has its own <em>Annual Percentage Yield (APY)<\/em> which is the effective interest earned by storing the coin with Celsius for one year.<\/p>\n\n\n\n<p>If you decide to earn interest in the native <em>CEL<\/em> token, you will be able to avail an even higher APY. We&#8217;ll get to this in a bit.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/zebpay.com\/wp-content\/uploads\/2021\/05\/Untitled-1024x1024.png\" alt=\"\" class=\"wp-image-13133\" width=\"440\" height=\"440\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Untitled-1024x1024.png 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Untitled-300x300.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Untitled-150x150.png 150w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Untitled-768x768.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Untitled.png 1153w\" sizes=\"(max-width: 440px) 100vw, 440px\" \/><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-borrow-stable-currency-against-your-crypto\"><span class=\"ez-toc-section\" id=\"Borrow_Stable_currency_against_your_crypto\"><\/span>Borrow Stable currency against your crypto<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Don&#8217;t want to sell your crypto, but in need of funds ? Use coins as collateral to borrow a stablecoin that is pegged to a fiat currency.<\/p>\n\n\n\n<p>You can choose your <em>Loan-To-Value (LTV).<\/em> The higher the amount of collateral you put up against your loan, the lower will be your <em>Annual Percentage Rate (APR)<\/em> or the annual interest to be paid towards your loan.<\/p>\n\n\n\n<p>If you pay your interest in the native <em>CEL<\/em> token, then you can avail even lower rates.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/zebpay.com\/wp-content\/uploads\/2021\/05\/unnamed-1024x1024.png\" alt=\"\" class=\"wp-image-13134\" width=\"479\" height=\"479\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/unnamed-1024x1024.png 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/unnamed-300x300.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/unnamed-150x150.png 150w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/unnamed-768x768.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/unnamed.png 1153w\" sizes=\"(max-width: 479px) 100vw, 479px\" \/><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-p2p-payments-with-zero-fees\"><span class=\"ez-toc-section\" id=\"P2P_payments_with_zero_fees\"><\/span>P2P payments with zero fees<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Celsius also powers zero fee p2p payments for their customers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cel-token\"><span class=\"ez-toc-section\" id=\"CEL_Token\"><\/span>CEL Token<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Celsius network has had quite a year.<\/p>\n\n\n\n<p>At the time of writing they were managing more than <strong>$17 Billion<\/strong> worth of assets for their customers. They have grown from 250,000 users at the end of 2020 to 680,000 users signed up to their platform now.<\/p>\n\n\n\n<p>They have achieved this by providing some serious value to their customers, and a lot of this value can be attributed to the network effect of their CEL token.<\/p>\n\n\n\n<p>The CEL token is an ERC-20 Utility token, that only has utility within the Celsius ecosystem.<\/p>\n\n\n\n<p>If you choose to hold CEL as part of your portfolio, you get better rates for borrowing and lending.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-features-of-the-cel-token\"><span class=\"ez-toc-section\" id=\"Features_of_the_CEL_token\"><\/span>Features of the CEL token<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<ul><li>Reduced APR on borrowing against crypto if you pay interest in CEL<\/li><li>Increased APY on lending if you earn interest in CEL<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"401\" src=\"https:\/\/zebpay.com\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.29.08_AM-1024x401.png\" alt=\"\" class=\"wp-image-13135\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.29.08_AM-1024x401.png 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.29.08_AM-300x118.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.29.08_AM-768x301.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.29.08_AM.png 1480w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The more CEL you hold, the better your rates get, thanks to their tiered loyalty.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-holding-the-cel-token\"><span class=\"ez-toc-section\" id=\"Holding_the_CEL_token\"><\/span>Holding the CEL token?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>The adoption of the CEL token is very high for CEL customers (&gt;60% are earning interest in CEL). So when it comes time to pay off weekly interest, a high demand for CEL exists in the market, and so the price of CEL rises with every passing week.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/zebpay.com\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.40.48_AM-1022x1024.png\" alt=\"\" class=\"wp-image-13137\" width=\"327\" height=\"328\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.40.48_AM-1022x1024.png 1022w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.40.48_AM-300x300.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.40.48_AM-150x150.png 150w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.40.48_AM-768x769.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.40.48_AM.png 1054w\" sizes=\"(max-width: 327px) 100vw, 327px\" \/><figcaption>The famed CEL flywheel<\/figcaption><\/figure><\/div>\n\n\n\n<p>Also, CEL has outdone the BTC and ETH price change over the last one year.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/zebpay.com\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.36.14_AM-1024x789.png\" alt=\"\" class=\"wp-image-13136\" width=\"510\" height=\"392\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.36.14_AM-1024x789.png 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.36.14_AM-300x231.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.36.14_AM-768x592.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/05\/Screenshot_2021-05-06_at_11.36.14_AM.png 1282w\" sizes=\"(max-width: 510px) 100vw, 510px\" \/><figcaption>One year price change comparison<\/figcaption><\/figure><\/div>\n\n\n\n<p>It is risky to hold CEL tokens, but you can always choose to optionally rebalance your portfolio at any time.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-risks\"><span class=\"ez-toc-section\" id=\"Risks\"><\/span>Risks<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<ol><li>Any loss of faith in Celsius the company will tank the price of CEL, and so your Store of Value is now very tightly coupled with Celsius, as opposed to a more battle hardened store of value like BTC.<\/li><li>By holding CEL, you would be converting parts of your stack from BTC\/ETH\/etc to CEL, and might miss out any gains (or in a bear market, stability) that those coins can afford you.<\/li><li>A token based lending model is quite common in the cryptoverse, but this is a very new model of a hybrid utility and security passthrough token, and it definitely adds a massive layer of complexity to an already complex lending business. How it performs in a bear market is yet to be truly understood.<\/li><li>Not your keys, not your coin. The risk of custodial cryptocurrency cannot be ignored. And if you were to go custodial there are more secure players like BlockFi.<\/li><li>Major competition from DeFi and other CeFi players. Increased competition will impact how much the CEL token will be worth if people start leaving the Celsius platform to look for greener pastures. And these pastures are sprouting up everywhere.<\/li><\/ol>\n\n\n\n<p><\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-dots\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Don&#8217;t want to just leave your crypto laying idle as you HODL? Let&#8217;s explore how Celsius Network allows you to make an interest on your idle crypto and also allows you to borrow stable currencies by using your crypto as collateral.<\/p>\n","protected":false},"author":1,"featured_media":13138,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[127],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13131"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=13131"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13131\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/13138"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=13131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=13131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=13131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}