Celsius Network - Is It the Best Staking Platform in DeFi?
Decentralized finance is not only about bypassing banks; it is about bringing what big banks have abandoned long ago. Following this ethos, the developers at Celsius Network do not form the standard DeFi team - their ambitions and dreams go far beyond the imagination of modern blockchain creators.
For Celsius, it is crucial to create a world in which users enjoy undeniable necessities like zero fees, almost-instant transactions, and fair interest. With their recent success, Celsius Network has not only achieved in delivering such promises, but it also managed to attract a ton of users as well.
What is Celsius Network?
Celsius Network is a blockchain-based lending protocol that offers everything that an ordinary financial institution does. The difference? Celsius does it better. With staking return rates averaging between 5% and 18%, we see a level of effectiveness not seen anywhere else.
Operating on a completely decentralized model that challenges everything that we know about finance, Celsius does an impressive job at offering staking, borrowing, and payments. Per the team, 80% of all revenue is given back to the community, while 20% is used to expand the project.
The entire Celsius ecosystem is primarily based on the CEL token.
But in which way can you utilize the token?
Key Features 💛
Rising 3624% in the past year, Celsius has successfully converted both old and new stakers alike. But which products and services have exactly contributed to this unremarkable success?
All Celsius community members earn interest by locking more than 35 cryptocurrencies. Each token has a specific Annual Percentage Yield (APR) rate, determined by the asset’s active market demand.
Celsius Network's staking rewards provide users with returns up to 18% APR a year, making the traditional bank rate of 1% appear like an outright scam 😁. The wide gap becomes even more apparent once users decide to receive interest in the form of CEL, which increases their rewards by up to 30%.
The best part? Celsius enforces no lockup period for staking. Interested parties do not even have to meet a capital requirement in order to participate. By dwarfing restrictions and providing the highest yields in the industry, this protocol has turned into one gigantic DeFi competitor.
Borrowing (Crypto Loans) 💰
At Celsius, everyone can take out crypto-collateralized loans and essentially borrow cash at the lowest rates possible. The way that this project does it, users still retain their original cryptocurrency when reaching out for fiat. This is especially important because in certain regulatory jurisdictions selling crypto for cash results in heavy taxation.
Creating a loan and receiving money only takes a few minutes. The collateralization ratio itself starts at 25%, and Celsius will always protect users from liquidations by keeping the loans over-collateralized.
Payment Network 💳
Last but not least, we have the CelPay payment network. Through a crypto payment app users can send digital assets to anyone at any time. All transfers are free and charge no fees. Even more, the app generates a CelPay wallet for new users who do not have a wallet address.
Naturally, you can pay vendors with crypto as well. Since the network is exceptionally fast, the payment will only take a few minutes to process.
Pros and Cons
We have learned about all the great features and characteristics that the Celsius Network has. But what about the advantages? After all, no crypto project comes without any flaws. Here is a quick summary of all the pros and cons of Celsius:
- Offers the best staking yield rates
- Hosts an entire DeFi ecosystem with a native mobile app
- No fees for transactions
- Stakers earn rewards every week
- Only supports 35 cryptocurrencies
- Requires KYC for earning interest
- Market volatility leads to highly unstable yields
- Only features a mobile app, no web platform