The slogan goes “The world needs banking, but it does not need banks”. Celsius works on cutting the banks as Celsius has the belief that banks take to much of the attention earn. See, the banks work by lending other folks’s money you and me who’ve fiat money government issued money like the Euro and Dollar to other folks who needs loans. In other words, it means if I have 1000 euro in my checking account, those 1000 euro is lent by other folks. The bank takes an interest of among 5 20 percent.
As we all know we only get about 1% annually for having funds in our checking account. Personally, my bank offers me a 0,1% annual attention!This means that the bank revenue 4 19 % of YOUR money. Celsius Network adds safeguard in their wallets through BitGo. BitGo is the best in the enterprise of securing cryptocurrencies, in response to Celsius Network. BitGo is depended on by many different blockchain companies, among the many bigger is Bitstamp, ripple, Genesis, Upbit, and Nexo.
Furthermore, they’ve a “multi sig” system in place at BitGo. This implies that no single person can move any funds without dissimilar parties’ approval. Another system it truly is in place for the defense in their funds is the collateral. Whenever coins are being lent from the asset pool, Celsius Network calls for up to 120% collateral in other types of value. The fifth utility is lower interest rates on coin loans.
Institutions borrowing and paying large amounts will also be given up to a 30% discount of interest on loans using CEL tokens. The sixth utility is a cashback system with CelPay. Celsius will reward CelPay transactions with CEL. You will earn back 1% on BTC and ETH CelPay transactions and 2% on all other CelPay transactions. The seventh utility is a premium service, help and event invitations. The top 100 CEL token holders will take delivery of benefits like live buyer help hotline, invites to industry top event, meet and greets with the CEO Alex and the Celsius team.
The borrowing on the Celsius platform seems simple and simple. In the app, which you can calculate the collateral needed to obtain anything sized loan you would like. An instance can be a loan of $3000. Firstly, the interest rate you want must be chosen, that you may choose either 4,95%, 6,95% or 8,95%. Secondly, the period of time of the loan. Currently, which you could choose 6 months, 1 year, 2 years or 4 years.
The attention rate and the loan period will check the amount of collateral needed for you to obtain the loan. As of now, there is 7 coins that can be used as collateral: BTC, ETH, XRP, BCH, LTC, DAI and DASH. Thirdly, it will tell what you are looking to deposit to use for a loan.