Celsius (CEL) founded in 2017 as a blockchain-based financial platform that allows users to generate high-yield savings, access low-cost loans, and make seamless cryptocurrency transactions. From interest-bearing accounts to fee-free financial services, with its native token offering special benefits, Celsius is positioning itself as an alternative to traditional banking by creating a more inclusive and efficient financial ecosystem. Let’s dive deeper into its origin, technical infrastructure, partnerships, and recent news.
The platform was a solution to the inefficiencies found in traditional finance systems, providing, through blockchain technology, a far more user-friendly and less expensive way to manage wealth. The CEL token is the core of the Celsius ecosystem, allowing rewards, fee discounts, and even governance on the platform.
Celsius was founded by Alex Mashinsky, Nuke Goldstein, and S. Daniel Leon. Mashinsky, being one of the leaders of VoIP technology, pictured Celsius as a means of democratizing financial tools for the masses while maximizing their benefits. Goldstein is the CTO and has helped shape the technical design of Celsius in such a way that it guarantees security, scalability, and ease of use for its users. Leon is a serial entrepreneur; he was inclined towards building an easily accessible platform for users around the world, integrating blockchain into their everyday financial needs. Their objective was to provide financial freedom by building a place where users could earn, borrow, and pay in digital assets without the complexities involved in traditional banking.
Celsius is a decentralized platform with features that make finance easy and seamless. Users can earn high yields on deposited cryptocurrencies, with rewards paid out weekly in-kind or in CEL tokens. Celsius offers low-interest loans backed by cryptocurrency collateral, enabling users to access liquidity without selling their assets.
Unlike traditional banks and some crypto platforms, Celsius does not charge withdrawal, deposit, or transaction fees. CEL provides various benefits such as higher yield rewards, reduced interest on loans, and access to exclusive community functionalities.
Celsius enables users to create passive income by integrating Proof of Stake (PoS) mechanisms to stake their rewards. The platform utilizes Ethereum-based smart contracts for the management of loans, interest payments, and staking of tokens in a fully transparent manner.
Celsius operates on the Ethereum blockchain, with a TPS limited to 15-30 transactions per second (TPS), but is exploring Layer-2 solutions to improve scalability and transaction speed.
Celsius uses Chainlink’s decentralized oracles to ensure accurate price feeds and secure loan collateral management. Integration with Polygon allows Celsius to provide faster and more cost-effective transactions, enhancing the user experience. Celsius collaborates with Crypto.com to better allow access to CEL tokens and add new financial products. Listing CEL tokens on exchanges like Bitfinex and Liquid increases their supply and accessibility to users from all over the world.
Celsius introduced custody solutions to make institutional-grade security available for the assets of retail and institutional users, further engendering trust and security. Partnerships with DeFi platforms such as Aave and Compound make Celsius’s offerings even better, adding decentralized lending and borrowing options for its users.
Celsius introduced improved stake rewards for CEL holders, encouraging long-term token holding and participation in the network. Celsius is committed to reducing its carbon footprint by using sustainable energy sources for its operations and promoting green crypto adoption.
Flexibility in the loan term and competitive rates have resulted in adding more products to the platform, attracting more users to its borrowing services. Celsius built campaigns educating users about the passive income to be made through crypto, amplifying adoption and retention.
Celsius has also been actively reaching out to regulators to ensure compliance and instill user trust as a secure and transparent platform. Changes in the mobile application of Celsius provided a more user-friendly interface, broader functionality, and higher accessibility for active users all over the world.
As of December 20, 2024, the native token of Celsius, CEL, changes hands at about $0.20. Several factors influence the price of CEL tokens. The growing use of Celsius’s saving and borrowing services increases demand for CEL tokens. Partnerships with DeFi platforms expand CEL’s utility and market presence. Attractive stake rewards encourage more users to participate in the ecosystem, adding value to the token and increasing overall engagement.
Celsius Network has reinvented financial services for cryptocurrencies, such as high-yield savings, competitive loans, and easy-to-use tools, in a decentralized manner. With strategic partnerships, continuing innovation, and a relentless focus on user benefits, Celsius has become the go-to blockchain-based financial solution. This sets the pace to drive the adoption of DeFi with an ever-expanding ecosystem, regulatory compliance, and community-driven initiatives that will change the way people manage their wealth.
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FAQs
Q1. What is the purpose of Celsius?
- A: Celsius covers high-yield savings, low-interest loans, and zero-fee transactions from a financial perspective.
Q2. What is the use of CEL tokens?
- A: CEL tokens provide rewards, discounts on fees, and voting rights within the Celsius ecosystem.
Q3. What is special with Celsius?
- A: Celsius puts users first by providing services with no fees, high yields, and financial tools that are accessible.
Q4. How does Celsius ensure security?
- A: Celsius uses institutional-grade custody solutions and integrates decentralized oracles to safeguard assets and transactions.